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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 (8015)	7/31/1998 12:19:00 PM
From: CCWriter	Respond to of 14162

Herm, I'm trying to get back into CPQ. I currently have no position. My main question is: In looking at the following chart bigcharts.com (Note: make sure BB's and moving average are set at 20 days) it appears to me that in trending markets all of the price action is between the one of the BB's and the moving average. In a uptrend (see before Oct 97, Jan-Feb 98, and Apr-May 98) the trading range is between the upper BB and the moving average. During down trends (see Oct-Dec 97, and Feb-Mar 98) the trading range is between the moving average and the lower BB. Could the application of these tendencies make the CC trading strategy more profitable? That is: During uptrends: o Sell calls and/or buy puts when price reaches upper BB. o Buy back calls , sell back puts, and/or add to position when price dips to moving average. During down trends: o Buy puts and/or sell calls when price reaches up to moving average. o Buy back calls and/or sell back puts when price reaches lower BB. If the stock seems to be moving sideways (no clear up or down trend) use the upper and lower BB's for buy and sell signals. Looking for you input, thanks. blaine

To: Herm who wrote (8015)	8/1/1998 6:38:00 AM
From: Bob Smith	Read Replies (2) \| Respond to of 14162

Herm, When you talk of Compaq reversing and the lower BB slanting upward, what is your timeframe when you look at the BB. Is it daily, weekly, monthly? I would be interested in your view's on CPQ, BTGC & XYLN. Thank you in advance. I have traded before ... but never used this technique. I plan to read up this weekend. Thanks Again Bob

To: Herm who wrote (8015)	8/1/1998 8:57:00 AM
From: virgil vancleave	Read Replies (1) \| Respond to of 14162

one that noone has heard of here is anik. biotech much like btgc. future lloks promising. i bought at 13 and sold the covered call for aug 15 at 1 yesterday. i plan to buy it back for half value or less and then do it again. if on the other hand i get called out, i made 3 per share on 300 shares for a nice monthly profit. been looking at lcos and srcm for the covered call with double put protection. the market is still showing weakness and should continue to the downside, especially since i keep noticing that call premiums are much higher than puts. otherwise, i would just do a covered put. just thought i would give everyone another ticker to looks at. go anik. keep making me money