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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: Dnorman who wrote (8636)	9/20/1998 10:13:00 AM
From: Herm	Respond to of 14162

BTGC PUT OPEN INTEREST Supply vs. demand is fluid balance. On the one hand, those 20 contracts will need to be closed or exercised. That fact that they are only 1/4 now most likely means they would expire worthless if BTGC continues to move upward. On the other hand, if BTGC goes down then the Oct 5 would become more valuable and perhaps double in value. At that point, a savvy investor who would not mind owning more of BTGC at a discount(-1/2 PUT value) would write the OCT PUT. They would realize that the stock is only backing off and reversing. It is a very low risk naked PUT for them. Of course, the other strike prices are more expensive but do offer a deeper profit potential as a PUT sideshow. The Apr. and 7.5 OCT have potential. SYMBOL STRIKE LAST CHG BID ASK VOL. OPEN INTEREST QTGVA 5 Oct 1/4 -7/16 .. 1/4 .. 20 09/18 09:30 QTGMA 5 Jan 3/4 +1/4 1/8 3/8 .. 20 09/18 10:22 QTGPA 5 Apr 1 -1/8 3/8 5/8 .. 69 09/18 01:46 * QTGVU 7 1/2 Oct 1 -1 5/8 7/8 10 591 09/18 03:24 * QTGMU 7 1/2 Jan 1 1/4 -1/4 1 3/16 1 7/16 5 191 09/18 03:57 QTGPU 7 1/2 Apr 1 7/8 -1 1/4 1 9/16 1 13/16 .. 28 09/18 03:17 NASDAQ: (BTGC : $7 1/4) $341 million Market Cap at September 18, 1998 Trades at a 39% Discount PE Multiple of 20.7 X, vs. the 34.1 X average multiple at which the Drugs SubIndustry is priced.