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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: simplygold who wrote (8872)	10/23/1998 7:31:00 PM
From: Herm	Respond to of 14162

Hi Lou, Did I forget to answer? Hummm? ABT ABT was an average growth rate of 12.4% and a P/E of 31. No bargain as far as I'm concern. ABT does pay a div of .60 (1.3%) askresearch.com NYSE: (ABT : $46 13/16) $73,346 million Market Cap at October 23, 1998 Ranks 114th in the Fortune 500 on Revenue & 43rd on Profit. Employs 52,820. Trades at a 12% Discount PE Multiple of 31.0 X, vs. the 35.1 X average multiple at which the Drugs SubIndustry is priced. ABT LEAPs - W.I.N.S. REVERSAL ALERT! The ABT 32.5 JAN00 @ 17 looks good. Plenty of open interest of 2,000+ contracts. ABT just made a new 52-week high today and the upper BB has been tagged. The RSI is going up and ABT should start coming down. I would not write a spread (CC the LEAPs) using LEAPs at this since a pull back is coming. You may short ABT for a few points or buy cheap PUTs and ride ABT downward. Then buy your LEAPs.