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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: Dr. No who wrote (7964)	7/27/1998 10:46:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

You can learn more about Bollinger Bands and Relative Strength Indicator at e-analytics.com. CELG is not pulling any profits! So, personally I would own or invest in this company. The open interest in the options is very low and not enough daily options volume to make defensive moves. NASDAQ: (CELG : $10 1/2)$129 million Market Cap at July 27, 1998 Loss Expected for 1998; Drugs SubIndustry priced at 34.5X PE This particular stock hit a 52-week high of around $14 1/2+. As you know, as usual the price tagged the upper BB and had a raised RSI so this stock is correcting at this point. I would not expect it to surpass the 52-week high anytime soon since the EPS has been reduced on July 21, 1998. Hence, the recovery spreads below may not pan out! You need a strong reversal and increase to maximize the recovery. But, it will bring more dollars than just sitting around. Series Long Short Entry Credit Total Gain OCT Call Buy 5 @ 10 Sell 10 CCs @ 12.5 ($187.50) $312.50 Outperforms Stock Ownership in price range: $12.00 - $14.62 OCT Call Buy 5 @ 7.5 Sell 10 CCs @ 10 $0.00 ($750.00) Outperforms Stock Ownership in price range: $0 - $12.50 OCT Call Buy 5 @ 5 Sell 10 CCs @ 7.5 $187.50 ($1812.50) Outperforms Stock Ownership in price range: $0 - $10.38 JAN Call Buy 5 @ 10 Sell 10 CCs @ 12.5 $156.25 $656.25 Outperforms Stock Ownership in price range: $0 - $15.31 JAN Call Buy 5 @ 7.5 Sell 10 CCs @ 10 $375.00 ($375.00) Outperforms Stock Ownership in price range: $0 - $13.25 PS - You can obtain recovery spreads on any stock at Doug's web site at webbindustries.com