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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: Douglas Webb who wrote (8818)	10/13/1998 6:52:00 PM
From: Herm	Respond to of 14162

Well, the MMs dropped three good size blocks today on BTGC which still traded below normal volume by over 100,000 shares. It dropped like a rock today. They suckered several people yesterday only to squeeze the kahunas today. BTGC REVERSAL ALERT - Looking for lower BB tag and RSI around 30) The next three days should be interesting since we are so close to options expirations this coming Friday! The MMs are really going to hammer and suck somebody dry with whipsawing prices. I would bet the trading action will repeat itself with significant downward volume in the AM (say 200,000+ before 12:00 AM) with BTGC tagging $5.00 and even falling below that mark briefly. That will shake out all the loose hands when they fold and the MMs grab those shares cheap to cover their short position. The short covering dance is up and down stock price movements with downward sell blocks followed by stock short covering and price increases. When the MMs have more than they can handle they will kick in their BTGC buy blocks and reverse the BTGC price before the close of the bell! After that, a short squeeze is possible if some hype is made! You can bet the analyst have their best customers in positions before they get on TV and hype BTGC. BTGC management would be foolish if they did not buy back some of their own stock at this point. Technically, this BTGC price pull back would signal the last component to a double-bottom pattern which is very bullish and upward price gaps are not uncommon. By now, BTGC must know if they have a good earnings number that will delight the street and send the stock back to the $9.00-$10.00 range. Study the chart and really take a look at the fact that BTGC lower pivots have occured on average at the 30 RSI level. You can monitor that data during the day at the address below! Folks! IT WORKS! askresearch.com What is the W.I.N.S. Stage? Where are we? Exactly, what stage is about to take place? I'm using the reading of the BB and RSI as my timer. According to that BTGC is now about to complete a price [W]ithdraw phase and will be turning into a pivot point and then BTGC will enter an [I]ncrease phase from there. Meaning what? What actions are required of us? PLANNED ACTIONS! 1. You need to cover BTGC CCs and cash out [S]ideshow BTGC PUTs! 2. You may wish to buy more BTGC stock to average down. You may wish to buy long BTGC 7.5 CALLs for upside $$ juice. 3. Setup for BTGC stock repairs (for those that need it) by selling twice as much BTGC calls ($7 1/2) and buying lower BTGC long calls ($5.00) as a credit spread for the SAME MONTH! That way, it does not cost you any additional money out of your pocket. Yet, if BTGC hits the $7.50 strike price your long calls will be deep into the money at $5.00 strike price giving you a $2.50 solid edge on the deal if you are called out! You can always closed the spread with a profit down the road before expiration and still keep your stock. Here is that Internet Explorer power tools for zoom in/zoom out! webbindustries.com