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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: virgil vancleave who wrote (8221)	8/15/1998 10:36:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Very helpful insight Virgil! I will bookmark this one! It adds more trading tools for the tool shed for sure. Many investors overlook the short side (Bear Markets) for making real fast profits or protecting outright protection of their long positions. They usually get killed and wipe out ALL OF THEIR bull run profits overnight! It is crazy I never considered your duo shorting combination as a covered PUT the reverse intent. This is fantastic! WOW! If you can do W.I.N. for up bull markets, it should be possible to do W.I.N. in bear market accept in a MUCH SHORTER length of time relative to CCing with CALLs and at much higher profits per round. Do you have any specific technical indicators you use to eyeball potential stocks to short? Any problems with PUT open interest trading too thin at times? What stock price range do you like to

To: virgil vancleave who wrote (8221)	8/15/1998 8:37:00 PM
From: grenouille	Respond to of 14162

virgil, I'm the one you are referring to who posted dissatisfaction with Regal. I too have had some good fills through Regal in the past and have traded an account with them for about 5 years, but I notice that when I access my account through their CommandLine web page, it is very slow loading and often the account information is inaccurate. Also, with regard to recent trades, I find that after placing an option order through their robot - either internet or touch-tone phone - it is often necessary to call their options desk to draw their attention to the order as the price comes into range in order to get a fill. Recently I placed an order to buy 10 AOL aug 100 puts @ $1. At the end of the day I checked the market and found that contracts had traded at 7/8 so I assumed my order had been executed. Wrong! My order was unfilled!. These are some of the reasons I am considering switching brokers. -Bob W

To: virgil vancleave who wrote (8221)	8/16/1998 6:01:00 PM
From: Herm	Read Replies (3) \| Respond to of 14162

NEW POTENTIAL BEAR TRAPS CCing using the W.I.N. approaching has become my regular bread and butter strategy. Even when the stocks are cycling downward there is money to be made from the CC premies. Right now, endless profit opportunities clearly exist by joining those hungry bears (down trending markets). The bears have come out of their long sleep ready to eat all the investors that don't suspect the danger! Perhaps, we can set some razor sharp bear traps and have a turkey shoot. Wow! Several of you folks have uncovered some real big mooses ready to roll over! Those PUTs are cheap and just waiting for us! XIRC Here are some clues that XIRC is ready for some profit taking. XIRC has more than tagged the upper BB. It is dragging it pretty high. There is no where to go but down! I have not seen many stocks with an RSI of 80+ remain there for too long before everybody heads towards the exits with their profits! P/E VALUE - BINGO - PLENTY OF FAT TO SPARE! XIRC is pushing a 92% premium P/E. With a growth rate of 25% vs. the 38.9 P/E spells TIMBER! WATCH OUT BELOW! NASDAQ: (XIRC : $24 7/8) 564 million Market Cap at August 14, 1998 Trades at a 92% Premium PE Multiple of 38.9 X, vs. the 20.3 X average multiple at which the Communications Equipment SubIndustry is priced. XIRC TECHNICAL INDICATORS - BB & RSI Again, take a look at all the benchmark highs for XIRC and note the average point drops each time XIRC tops out. There is reasonable expectations that the history will repeat itself again. bigcharts.com XIRC SHORT INTEREST Our short interest data is always one month behind. By this upcoming Friday, August 21, 1998 we should know what the last month short interest has been. I suspect it will increase along with the volume. One way to know the short interest is creeping up is the increase in the avg. daily volume. The stock price may continue upwards but the smart money is fading in for the kill. Month Shares Short Avg Daily Volume Ratio* Remark 07/98 712,286 294,281 2.42 06/98 675,858 240,167 2.81 05/98 798,174 648,091 ====> 1.23 XIRC pulls back 04/98 899,714 507,462 1.77 03/98 680,407 389,018 1.75 02/98 910,273 271,543 3.35 01/98 1,098,152 255,356 4.30 12/97 1,256,887 330,165 3.81 11/97 1,155,585 363,172 ====> 3.18 XIRC pulls back XIRC INSIDER TRADING - GOLDEN PARACHUTES? GATES DIRK I Disposed 50,000 $20.00 07/29/98 08/10/98 S 1,034,800 MATHEWS J KIRK Disposed 50,000 $20.00 07/28/98 08/10/98 S 352,702 At least two CEOs snatched a few thousand shares @ $20.00 for spending change. Hummmm? I guess they think it's a good time to take some money off the table! Me too! Load up on cheap PUTs! XIRC just came out with earnings release. It's a LONG TIME until the next one and no doubt XIRC will experience profit taking! The PUTs are prices right! 15 Sept. @ 3/16s, 15 DEC. @ 1/4 , or 17 1/2 Dec. 5/8s could result in $2 to $3 points scalpe on the pullback! ----------------------------------------------------------------- ATRC Looks good for a bear trap. Short interest is building and volume is dropping. This baby is slowing down. NASDAQ: (ATRC : $19 1/2) $456 million Market Cap at August 14, 1998 Trades at a Premium PE Multiple of 33.6 X, vs. the 16.5 X average multiple at which the Medical Services SubIndustry is priced. Gro=35.6 vs. 33.6 P/E Month Shares Short Avg Daily Volume Ratio* Remark 07/98 1,184,563 126,269 9.38 06/98 1,141,597 183,130 6.23 05/98 1,216,910 539,707 2.25 04/98 2,101,339 181,025 11.61 bigcharts.com ----------------------------------------------------------------- ANF NYSE: (ANF : $52 3/16) $2,662 million Market Cap at August 14, 1998 Trades at a 81% Premium PE Multiple of 35.7 X, vs. the 19.8 X average multiple at which the Apparel SubIndustry is priced. bigcharts.com ----------------------------------------------------------------- AN NYSE: (AN : $50 1/16) $48,755 million Market Cap at August 14, 1998 Ranks 17th in the Fortune 500 on Revenue & 23rd on Profit. Employs 41,725. Trades at a 27% Premium PE Multiple of 26.6 X, vs. the 20.9 X average multiple at which the Major Oils SubIndustry is priced. bigcharts.com --------------------------------------------------------------------- GVA NYSE: (GVA : $29 1/2) (GVAw : $25 5/8) $808 million Market Cap at August 14, 1998 Ranks 992nd in the Fortune 1,000 on Revenue. Employs 3,300. Trades at a Premium PE Multiple of 20.9 X, vs. the 10.1 X average multiple at which the Cement SubIndustry is priced. bigcharts.com -------------------------------------------------------------------- TMPW NASDAQ: (TMPW : $35) $944 million Market Cap at August 14, 1998 Employs 2,200. Trades at a 91% Premium PE Multiple of 54.7 X, vs. the 28.7 X average multiple at which the Advertising & Marketing SubIndustry is priced. bigcharts.com Month Shares Short Avg Daily Volume Ratio* Remark 07/98 523,800 142,625 3.67 06/98 131,206 59,505 2.20 05/98 129,473 141,287 0.92 04/98 168,545 113,005 1.49