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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 (8259)	8/17/1998 9:30:00 PM
From: virgil vancleave	Read Replies (1) \| Respond to of 14162

noone on the yhoo board seems to know why xirc went down. my opinion, or reasoning is this: look at a long term chart. notice the resistance i posted about a day or two ago. just can't seem to take out an old high. overhead supply just too strong. could even send this one back to 18 just as herm stated. if you don't believe me on this one, read a few tech analysis books. or better yet, look at these charts. uis, rbd, file, lhsg (recent one year chart). there are some others but these are all i can think of for now. this overhead applies to any high for the past 5 years and as in the case of rbd, sometimes a little longer. i was going to buy rbd until i saw the chart. i decided not to short but to wait and purchase above the prior hgih. never made it. just thought of another one i didn't buy for the same reasons. acol it just could not overcome the old overhead supply. thus, when we see this, we need to load up on cheap puts since the risk/reward ratio is much in our favor. hope this helps.