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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 (8751)	10/5/1998 9:29:00 PM
From: virgil vancleave	Read Replies (1) \| Respond to of 14162

Hi again. I only have a few days left and am disappointed that i will miss a historical market move. I still feel we are just at the start of what will be the largest bear market since the depression. The leaders are falling down and cant' seem to get back up. Seems too common for a new one to get shot down hard every day. Take lu which showed up on my short system a while back at 77. I ran out of cash so just paper traded it for practice. By the way, paper trading really works and improves your real trading and your confidence level. csco made my list two weeks ago at 66.5 and look at it now. enough for my paper trades. Now for some prospects with links since I have a little more time today than normal. first, check out pixr. Nice premiums and a high flyer. Trades at 86 times sales (WOW) and is quite volatile. If you use a covered call, it would behoove you to protect the downside and use puts, which would also allow you to trade in and out of the calls as the stock falls back to the twenties. here's the chart showing the recent tag of the upper band and the clear downtrend in place. bigcharts.com Next pick is one I still have a position in and may add to it playing the downside. All we need to do is break through the 42 to 44 support range and the next stop would be 29. Trend is now clearly down and it looks like a head and shoulders top with a neckline at 49. Funny thing is that using a swing rule for this top formation puts a target price at 29 which is the support. The premiums favor covered puts with protective calls as a side show. Lots of insider selling and the cfo recently stepped down, selling his WHOLE stake upon leaving. NOW that is what i call confidence in your own company. Here is the chart which is resting on the lower bollinger band which looks to move lower if broken. bigcharts.com Here is one more that showed up a few days ago on my short list in the 120 range. It is vod. Expensive and now downtrending from another head and shoulders top with a neckline at 122ish. Or looking at the chart longer term, the neckline could be at 104. Stock trades at around 10 times sales and a p/e of 53. Pretty high if you ask me. Sitting on the lower bollinger band and moving it to new lows. If you take the neckline to be at 104, the swing rule I used earlier gives me a target of 55 to 60 on the downside. Here's the chart. bigcharts.com Believe it or not, I am still long two stocks. Both biotechs. anik and mre. anik was actually up today and mre closed strong recovering some of it's losses. Hope the inputs help. I will post more ideas with corresponding charts if I get time. Good luck all.