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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: Andrew Williams who wrote (8688)	9/25/1998 11:32:00 AM
From: Scott	Respond to of 14162

The comments about the desirability of shorting against the box have me confused. In the past, there might have been a tax advantage to an end-of-year SAB, but that doesn't exist any more. Since the position is neutral, I don't see how you can make any money by being long and short at the same time, except for this one case: If a stock starts to plummet, you won't be able to short it, because there won't be any upticks. Therefore, if you believe that a stock is going to warn or drop for some other reason, but you also think it could go up, you could short against the box. At the first announcement of bad news, you could sell your long position with a loss, and continue to ride your short position down for a larger gain. Stocks seem to drop a lot faster on bad news than they rise on good news. The SAB only seems to be worthwhile when a big move is happening, and you can get out of the contrary position partway through the move. For normal fluctuations, your positions cancel each other out, but you lose two spreads when you close them. CC'ing in a SAB position doesn't seem any better than writing naked Calls. Discussion is welcome. Scott

To: Andrew Williams who wrote (8688)	9/25/1998 1:08:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Well Andrew, You have been milking BSX for a long time now! Wow! You are made several kahunas! I did not forget BSX. If you recall, there was a reader who had a different point of view than me about BSX claiming analysis just issued a buy recommendation. Well, there is a conflict of interest with some of those analysis. I try to do my own homework and technical review of the situation. If the charts and P/E spells TIMBER I will go with that before I follow the TV "experts!" I just did not mention it on this forum. I sat back and watched the outcome to take place. I'm no smarter than the rest of you and I do make mistakes! You should be able to ride BSX down to $45 EASY! That is massive drop from $70! Goes to show you, they fall like rocks when the time comes! Before I forget! In order to post the charts from askresearch you must remove the end of the line up to the RSI=??. See what I chopped off the BSX chart below! Check out the RSI nose dive. No support until $45 MAYBE! askresearch.com Delete this part of askresearch.com chart to post! &macd=12-25-9&roc=16-8&mfi=13 OUR BSX BEAR TRAP ANNOUNCEMENTS! Monday, Aug 31 1998 5:47PM ET Message 5635686 Wednesday, Sep 2 1998 6:13AM ET Message 5650209 Wednesday, Sep 2 1998 8:21AM ET Message 5650537 BSX P/E VALUE NYSE: (BSX : $54 7/8) $11,002 million Market Cap at September 25, 1998 Ranks 706th in the Fortune 1,000 on Revenue & 425th on Profit. Employs 9,320. Trades at a 15% Premium PE Multiple of 29.7 X, vs. the 25.9 X average multiple at which the Medical Products SubIndustry is priced. PS I did not forget the short against the box summary. I'm thinking about it and will have something this weekend. I had the day off today because of the hurricane Georges in Florida and it has been one deadline after another. Luckly no real wind/rain damage in my area in West Palm Beach.