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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: Joseph F. Hubel who wrote (8675)	9/23/1998 8:53:00 AM
From: Herm	Read Replies (4) \| Respond to of 14162

Welcome Joseph to our forum! I hope we can tap your seasoned background sometime. It is my opinion that this forum has evolved by contributions made by the readers. A piece here and there and eventually a summary of the best way to handle investment pitfalls. In short, we are on the brink of becoming a "virtual investment club." A great deal of email messaging takes place behind the scenes on this forum. It is my desire to tap that networking by better organizing the process via the internet. BEAR TRAP ALERT! Anyway, back to your interesting inquiry and real situation. In my past experience with mergers you will get in this case 16 new QWST shares for every 100 you owned since they are worth less ($.61). In order for the option contracts to reflect the revised value of those original 100 QWST shares it will now take 116 QWST shares. Since, you recieved 16 in the stock and now owe 16 to the option buyer, it is a wash. askresearch.com Now, from a company standpoint it is another story if the merger was good or bad. From a technical chart standpoint, thanks for this one! It looks like a pending bear trap when it hits $38.00+. Reason? Recent 52-week high and this is the first attempt to match that. The split earlier this year increased liquidity and this merger will add cost. Strange, QWST is not making any earnings anyway! A large insider CEO selling of stock. Check it out! biz.yahoo.com NASDAQ: (QWST : $34 1/4) $7,077 million Market Cap at September 22, 1998 Employs 720. Loss Expected for 1998; Cellular & Telephone Services SubIndustry priced at 28.1X PE. If you follow our W.I.N.S. approach you may want to load up with cheap QWST when the stock tags the upper BB! The (QWAVE) 25s OCT @ 3/8s are begging for buyers with an open interest of 1,290. Gravy time!!!!