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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: H.W.Melle who wrote (7934)	7/23/1998 12:35:00 AM
From: Tony B	Respond to of 14162

Hi Horst, I am also using CPQ to write covered calls. As a matter of fact, CPQ is all I own now in my modest account. I have had some success (finally <g>) with covered calls on CPQ. The stock is already pretty beaten down and even if it goes sideways for a while I will be happy to collect call premiums every month. By only following CPQ I have been pretty good as predicting the price action. If you ever want to share notes, let me know. Good Luck TB

To: H.W.Melle who wrote (7934)	7/23/1998 8:42:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Howdy H.W.! TECNICAL CONDITIONS: Dropping RSI in price cycle, price approaching bottom of Bollinger Band. I looked at CPQ which is approaching the bottom of it's price cycle (lower BB) soon! It looks like the $30 range before bounce and reversal. Notice the right upward slant to the RSI indicating a trading range of $30 to $36 or more once the reversal is completed. Suggestions: If it was my money I would: 1. be preparing to cover my CCs. 2. considering when I covered my CCs to sell PUTs at the money ($30 to $32 1/2) two months out. 3. considering to buy cheap long Calls (sideshow or recovery spread). 4. preparing to cover any short positions. 5. considering averaging down by buying more shares.