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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: Russ B who wrote (7978)	7/28/1998 1:25:00 PM
From: Herm	Respond to of 14162

Thanks Russ! The general rule is "as CHEAP as you can get em!" You basically are using the CC premies to leverage with the purchase of the opposite option instrument. buying PUT/CALLs as a sideshow will be the cheapest at that point of the W.I.N. strategy. You will know when you look at the strike price possibilities. Open interest will steer you in the right direction along with the amount of time remaining until the expiration. So, if you are two days away from experation, that would not work in your favor. The next month would be the logical choice at what ever strike price that would make it very profitable. Generally, two strike prices down for the PUTs and one strike price up for the CALLs. You might decide to go out more months and lower strike prices. Alot depends on what the chart reads in RSI and BB price and trading pattern for that stock. I can tell you that technology stocks move up/down in totally extreme movements versus Kmart or Ross Stores.

To: Russ B who wrote (7978)	7/28/1998 5:34:00 PM
From: Herm	Read Replies (3) \| Respond to of 14162

By the way Russ and our regulars, Here is a short review of CCing stocks to W.I.N.! Approaching Bottom and Early Reversal Notice List: [cover CCs, cover shorts, cash out PUTs] TRV - approx. target bottom $61.00? BTGC - approx. target bottom $6.75? CPQ - approx. target bottom $28.00? ROST - approx. target bottom $42.00? Should Bounce Real Soon List: NOVL - may this week around $11.50 and then watch out! IFMX - looking real good for next two days at $6.50 pop up! KM - Kids coming back to school and KM may start to cook at $16.50!