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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: Dnorman who wrote (7993)	7/29/1998 8:38:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Hi Dennis, Technicals: ITWO had a trading volume yesterday that was more than 25% above average. That's a good sign of a blowout. The price is sitting on the lower BB and the RSI is very very low. In fact, the charts are distorted from the recent drop. Hence, I would buy at the money calls (August)in order to catch the most delta and dollar for dollar trader's (cat) bounce. ITWO should move up nicely today. Take the average volume and divide it up by 7 1/2 hours. If after the first hour so more the stock is up on more than the average/hour, then you have a kahuna in the making. A bounce may be good for two to three days before profit taking. Fundamentals? Plenty of downside in this baby! If you are long, buy long PUTs and cell CCs in the money as far out as the eye can see. NASDAQ: (ITWO : $24 7/8) $1,589 million Market Cap at July 28, 1998 Trades at a 82% Premium PE Multiple of 69.1 X, vs. the 38.0 X average multiple at which the Software & Services SubIndustry is priced. NOVL earning coming up around August 08 and may be in play for a test of the 52-week high. They have been getting their act together lately. NASDAQ: (NOVL : $11 13/16) $4,124 million Market Cap at July 28, 1998 Ranks 734th in the Fortune 1,000 on Revenue & 517th on Profit. Employs 5,800. Trades at the 49.2 X average multiple at which the Networking SubIndustry is priced.