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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Ms. X who wrote (5955)	8/17/1998 8:33:00 PM
From: james ball	Respond to of 34811

Sure anytime. While we are on options lets talk about option equivalents. Many brokers and investors fail to consider option equivalents. Take for instance selling uncovered puts. Many think it is a good income generator and they also think they are placing an order to buy the underlying stock at a lower price. Remember the key to understanding all option strategies is to understand the defintion. A put option gives the buyer the right to sell stock at a certain price and for certain consideration and the right expires on a certain date. The seller of the put is generally called the underwriter because his function is the same as an insurance company. He stands ready to buy that stock if the the contract is exercised. Very similar to your car insurance, ie you have an accident it is a total your insurance company in essence buys the car from you. Selling a put places the seller in a contractual positon to buy stock if it has an accident (falls) and to enter such a contract he must be paid a premium like your insurance company requires. The maximum a put seller can make is the premium. I sell an XYZ Sep. 50 Put at 3 with the stock at $50. What is my risk if the stock goes to 0? $50 -$3 premium I took in or $47. Now instead I decide to do a covered write. I buy the stock at $50 and sell the Sep. 50 call for $3. The stock goes to 0, what is my risk? $50 -$3 for the call you sold or $47. Same risk equivalent strategies. Ok, think about why long calls are the same as long stock and long put. Tom Dorsey

To: Ms. X who wrote (5955)	8/17/1998 8:51:00 PM
From: Ms. X	Read Replies (2) \| Respond to of 34811

Semiconductor Sector. About ready to reverse back up? Taking a peek at the Semi's it may be we see a reversal back up this week. If so, you can trade the sector (because the market is still negative) with stops in place. I've pulled some stocks whose RS is positive and who are trading above the trend line. These would be good ideas to start with. Symbol Pattern Pat Date RS Signal ALTR Triple Top 08/06/98 Sell INTC Double Top 07/27/98 Sell MU Double Top 07/31/98 Sell NVLS Bullish Catapult 08/07/98 Sell QLGC Double Bottom 08/03/98 Buy RMBS Double Top 08/12/98 Sell SANM Double Bottom 08/03/98 Buy TXCC Double Top 07/30/98 Sell VECO Double Top 08/06/98 Sell VTSS Bullish Triangle 08/07/98 Buy

To: Ms. X who wrote (5955)	8/17/1998 9:12:00 PM
From: Ms. X	Respond to of 34811

Looking at some of the Semi's. ALTR: Vertical count: 56 43 X 42 X <--Spred double top buy 41 X X <--Triple top buy 40 --X O X --X --X O ---------- 39 X O X O X O X O 38 X O X O X O X O <--Nice Pullback 37 O X O X O O X 36 O X O 8 Med 35 O X ------------* ---------- 34 O X * <--Stop Point 33 O 7 * 32 O X * 31 O X * 30 6 X --* ------------------- INTC: Vertical Count: 99 - 89 \| X <--Just broke triple top today 88 X X X 87 X O X O X 86 X O X O X 85 X --X O X O X ---------- 84 X O X 8 X O 83 X O X O X 82 X O X O 81 X O 80 X --------------<--Stop point for trade. 79 X Med MU: Vertical count: 51 37 X O X O * 36 X O X O * X 35---X O X O X ------------ 34 X O O X O * 8 O X 33 X O X O X * X O X 32 X O 3 X O X * X <--Double top 31 O X O 4 O X O * X X O 30 O X --------O X O X O --* X O X ---------------- 29 O O X O X 5 X O X Med 28 O O O X O X Higher Bottoms 27 O 7 O X 26 O X X O 25 --------------------O X O X ------* ------------ 24 O X O X * <--Stop point 23 6 O X * 22 O X * 21 O * 20-------------------------* ----------------------

To: Ms. X who wrote (5955)	8/17/1998 9:30:00 PM
From: Ms. X	Respond to of 34811

Some semi stocks Part 2: NVLS: Vertical count: 48 44 * X 43 * X O 42 * X O 41 * X X O 40 ------------X * X --X O X O ------------ 39 X O X O X O X O 38 X X O X O X 8 X O 37 X O X X O X O X O O <--At support 36 X X O X O X O O 35 X O X O X O X -------------<--Stop point 34 X O X 7 X O X 33 X O O O 32 X 31 X 30 ---------------------------------------- QLGC Vertical count: 76 68 67 X 66 X O 65---------X O ---------------- 64 X O 63 X X O X<--Today's action 62 X O X X O X X 61 X O X O X O X O X 60 X O X O X O X O X ---------- 59 X O X O X O X O X 58 X O O X O X O X 57 X O X O X O 56 X O 8 X 55 X --------O X -------------- 54 X O X 53 X O X 52 X O 51 X <--Stop point 50 X -------------------------- 49 X RMBS: Vertical Count: 85 67 X 66 X O 65 --------------X O ------------------------ 64 X O 63 O X O X X 62 O X X X O X O X 61 O X O X X O X O X O X 60 O X O X O X O X O ----X O ----X ---------- 59 O X 7 X O X O X O X O X 58 O X O X O O O X O X 57 O X O X O X X O X X <--Good Entry 56 O X O X O X O X O X O X Med 55 --O X --------O X O X 8 X O X ---------- 54 O X O X O X O X O X 53 O O X O X O X O X 52 O O O X O <--Pulled right back to support 51 O 50 --------------------------* ---<--Stop point