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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: nlam who wrote (8163)	8/9/1998 11:03:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

If you write CC at this point for the AUG110, you may very well be called out! AOL is now in an upward cycle to retest the 52-week high. EPS projection was just increase this past week! If that is your plan, fine! Otherwise, wait until AOL tops at the end of this cycle and protect your drop! Also, you may want to pick up the LEAPs rather than own the stock itself. You could own twice as much and write twice as much CCs. The rate of return is much greater. NYSE: (AOL : $111 7/8) $23,026 million Market Cap at August 7, 1998 Ranks 863rd in the Fortune 1,000 on Revenue & 808th on Profit. Employs 5,800. Trades at a 11% Premium PE Multiple of 116.5 X, vs. the 104.8 X average multiple at which the Internet Access Providers SubIndustry is priced. bigcharts.com