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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 (7996)	7/29/1998 12:16:00 AM
From: virgil vancleave	Respond to of 14162

shhh. gold seems to have made a bottom and may be due for a nice recovery. alot of gold charts are showing nice bottom bases now. another one which looks good and fundamentally should do well is alta. price is about the price of an option at 1 9/16. they have a new mine which will pour its first gold in august. pdg reported better than expected earnings and is fundamentally sound and pays a dividend. calls are not worth much premium though. one way to play this if you are bullish and still want the downside protection/low risk is to short the stock and then sell the covered in the money put. then use the proceeds to buy some out of the money calls. if you are wrong, you should lose very little. if you are right and the stock moves up, since you used the proceeds to buy calls and should have more calls than short stock, the rewards would be quite substantial. just my input. herm seems to be very knowledgeable and provides some very good input. good to see the professionalism on this thread.