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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 (8677)	9/23/1998 3:14:00 PM
From: the options strategist	Respond to of 14162

Herm, Thread, is anyone using a real time quote and alert pocket system? If so what kind is it and/or what do you suggest? I'm currently looking at the Reuters Marketclip Palm Professional. Thanks.

To: Herm who wrote (8677)	9/24/1998 12:30:00 AM
From: Douglas Webb	Read Replies (1) \| Respond to of 14162

Well, what do you know... it looks like the ground has started to crumble under BTGC... Big up day for the market today, and yet BTGC falls 5%, to $7.00, on volume that's 83% above average. We opened today right on the upper BB, and that was the day's high as well. RSI peaked and is now headed down. Looks like the technicals called it, even if it was a couple of days early. (That's better than a couple of days late, I guess...) webbindustries.com So, where to from here? The first stop looks like $6.50. On the chart, there's an obvious low at $6.50 in early July, a bit of support in early August, some resistance in mid-August, and it's the halfway point of the tall candle six days ago. The next support level looks like $5.50. There's a bottom there in mid-August, some resistance in early September, it's the halfway point on the downtrend in the second half of August, and it's the bottom of that tall candle. Below that, we should either stop at $5.00 or go through to $4.25. I think $5 is a strong support level, but once through there is a sharp drop, probably due to $5 being a cutoff point in the way stocks are treated by brokerages. When BTGC closed below $5 at the end of August, there were probably a bunch of unexpected margin calls, which drove the stock down a lot over the next couple of days. That could happen again. Well, I'm short $5 calls, and long $5 puts. I guess I wound up in the right boat. Let's go diving... Doug.

To: Herm who wrote (8677)	9/24/1998 6:34:00 AM
From: Joseph F. Hubel	Read Replies (1) \| Respond to of 14162

Herm, Thanks for your response, I feel better. Though I view QWST as an emerging Gorilla in it's field, it still blew me away with it's 5+ point gain Wed. I had noticed that it was gaining momentum as it came off it's lows but I had not expected such a quick move up. Now I'm stuck waiting for the clock to tick. The Oct 25 Puts you mentioned are off the quotes with the stock now near 40? The Oct 32.5 @ 5/8 look good for this morning unless the profit taking is immediate. Also in a similar situation with Excite which blew past my CCs with a 9+ point gain. Had I not written CCs, neither would have made a move. (g) JFH

To: Herm who wrote (8677)	9/24/1998 7:54:00 AM
From: Joseph F. Hubel	Read Replies (1) \| Respond to of 14162

Herm, To the same question I posted to the DayTraders list, which I have subscribed to over two years, I got this reply: **************************************************************** "You owe 116 shares plus a cash amount equal to .61 shares. Sounds like QWST bought somebody for 1.16 shares +. The option you sold was actually the option for the bought company. Technically you are naked-) You might consider rolling the contracts forward. The Aprils look to be trading at about the same price the Dec are but look like real QWST options so should be equal to 100 shares. NB there looks like allot of different QWST options are listed so be careful. FWIW the NT leaps that are listed are actually BAY options so should be for 60 contracts per. Same idea." ***************************************************************** If this is true, it would be a problem. It is strange that the calls would be listed that way as LCI no longer trades and the options I sold were listed under QWST at the CBOE. Sorry to be off your normal topics. JFH