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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Marq Spencer who wrote (14579)	8/13/1998 6:59:00 PM
From: Leman	Respond to of 42787

BMRA has very huge potential no debt and selling at half of sales and small float when discovered will be big

To: Marq Spencer who wrote (14579)	8/15/1998 1:00:00 AM
From: Robert Graham	Read Replies (2) \| Respond to of 42787

Hello Brian! I see you developed an intelligent strategy to manage the risk. I never really sat down and attempted to figure one out with selling naked CALLs. I can see why your approach would work since you are prepared to purchase the stock before you run into losses, using the premium as your protective margin to operate in, and you are choosing a good resistance point to base your decision on. I also like how you wait for the price to back off of resistance thereby establishing the high as a point of resistance, instead of anticipating the limit of the move. Now, how do you tell the difference between a pull back from an uptrend which will continue and a change in trend? In this case, I mean trend change as in going from up to down or up to neutral where the stock is in a type of trading range. Do you use price and volume action on the daily chart, the tape, or some form of indicator system like that which can include the ADX as downward sloping? Bob Graham