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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: Herm who wrote (8004)	7/30/1998 5:43:00 PM
From: Herm	Respond to of 14162

Howdy Doug and All Our Rich CCers Out There! Our two indicators are working just fine with BTGC. BTGC continues the slow drop downwards to the target $6.50. That is, that is what apprears to be the approx. position of the lower BB with the RSI pretty much confirming a drop in new money! I will be picking up another 300 shares this time around to make it an even 1,000 shares. I like those round numbers. It's easier to figure how much I'm up or down each week. Up 1 point this week, well that's another $1,000 and so on! :-) The same trading CCing W.I.N. rules apply! bigcharts.com I would not be surprise to see more unchanged days with increased intraday price swings. Those MMs are playing cat and mouse with novice investors all day long. In the meantime, my 7 Jan. 7 1/2 CC calls sold @ 1 3/4s two weeks ago are eroding real fast and will drop to around 15/16s tomorrow. The CC premie dollars are generating some minor interest $$ in my account offsetting what I pay for my own margin interest. So, it's a wash! If you recall I sold deep in the money Jan. CCs because I was fairly confident that BTGC would pull back according to the chart. That it! It does not matter what I personally think BTGC is worth! The chart tells the story! What mistakes have I made on this cycle? I regret not shorting 1,000 shares of BTGC at $8.00. Covering at easy at $7.00 would have generated $8,000 - $7,000 = $1,000 profit on $2,400 worth of collateral. No Aug. BTGC PUTs at the price I was looking for were being offered. A lost opportunity but not a lost investment. The average BTGC volume is around 400,000 shares. It has not come in close to that amount. Do you know how many people are looking at BTGC and getting sick as they helplessly watch their paper loses mount? They don't want to try something different and they don't want to lose money! They want to be astute investors! That sounds like an oxymoron to me like depending on one's idiotic wisdom. :-) Date Close Change Day High Day Low Volume Jul 30 7 1/8 nc 0% 7 3/8 7 203,500 Jul 29 7 1/8 - 1/32 -0.44% 7 7/16 7 209,300 Jul 28 7 5/32 - 7/32 -2.97% 7 5/8 7 1/8 153,500 Jul 27 7 3/8 - 1/16 -0.84% 7 1/2 7 3/16 151,000 Jul 24 7 7/16 + 3/16 +2.59% 7 7/8 7 3/8 275,300 Jul 23 7 1/4 - 5/32 -2.11% 7 5/8 7 3/16 207,700 VIX Volatility Index: Some of you remember last year when I mentioned the VIX. I have been playing with that off and on. I'm always willing to listen to reason you know! Well, I read in Barron's recently that evertime the VIX drops to around the 20 level lately, the DOW and Nasdaq goes into a correction. I watched it closely this time and sure enough two weeks ago it dropped to 20 and last week the DOW took back 400 points. WOW! We may have another instrument to help monitor the big picture! In fact, I was plotting the VIX going back to Jan. of this year and it sure looks pretty good. What do you think Doug? Reason they said? When the volatility drops (it is reasoned) the market has become very bullish to the point of raising P/Es too fast. Hence, everyone heads for the exit doors at the same time and we get a noticeable pull % back! Like the helium balloon venting air to avoid a full blown rupture! That VIX could be used as mechanism for timing mutual funds withdraws and deposits of the leading aggressive growth fund.