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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: Bill Field who wrote (8915)	11/2/1998 8:57:00 AM
From: RDHickman	Respond to of 14162

BILL!!!!!!!! You don't have to SHOUT! Perhaps Herm missed your question. One example of Herm's time and effort can be found in Message #7739. A real example of how to use BB & RSI. By the way,I didn't see an answer from you to Louis (Message #8905) either.

To: Bill Field who wrote (8915)	11/3/1998 12:28:00 AM
From: Herm	Read Replies (2) \| Respond to of 14162

Hello Bill, Sorry, I missed your question! I did happen to read it at work and was planning to address later that evening. The real reason I screwed up was that a very pretty woman with gleaming red hair caught my attention and fancy last week and you know what happens to your concentration when you get flirting eyes and inviting body language from a woman, right Bill? You lose track of time, focus, and own your name. The last thing on my mind was the forum this weekend. It was Friday and then Monday morning. The time in between just vanished. I was intoxicated and did not even touch a drop of alcohol. :-) QUESTIONS Please answer a few elementary questions about your CC theory. I have been selling calls on my portfolio for a few years with some success and wish to be more effective. RESPONSE For the sake of the readers and lurkers out there, this forum does present a trading approach (specific strategies) which does include covered call writing (CCing or CCs) as a major revenue generating technique among the W.I.N.S. approach. I would like to rephrase the reference to "theory" to approach. The theory has been long ago confirmed by just about everyone that has tried it. Approach would be more accurate. QUESTIONS 1. What are your specific settings for BB and RSI charts and what duration charts do you use (5 min. 10 min.)?? ANSWER The Bollinger Bands (BB) and the Relative Strength Indicators (RSI) setting are adjustable. Using logarithmic price scale setting for the I start with settings of 20 weeks for the BB and 14 days for the RSI. Of course, some stocks have strange price patterns and may require that an adjustment to the BB usually. You are trying to get as many of the highs on the upper BB and as many of the lows on the lower BB. In other words, the setting that gives the best pivot predictor. Look at BTGC below and you will see that Friday was the upper BB tag and today BTGC started to pull back as normal. And, the RSI is dropping as normal. The recent reversal was not typical for BTGC. I have 7 Jan 7.5s that I did not cover since I was fairly sure that BTGC would bounce off the upper BB. BTGC CHART askresearch.com QUESTIONS 2. I have seen references to W.I.N.S. on the thread, would you please define it or direct me to specific reply no#s (please say it's NOT a WADE COOK thing). I look forward to your response and thanks again for a great thread... ANSWER Wade Cook! Who is that? He is related to Captain Cook or Sam Cook? No! :-)We have nothing what so ever to do with WC's product/services. His trade mark W.I.N. stands for Wealth Internet Network. What you heard here is W.I.N.S. which stands for Withdrawing, Increasing, Neutral, Sideshows. Thinking about the option tool shed in those terms helps investors to apply the right tool(s) at the right time for the desired results. Here is a repeat of something I wrote a few months ago. Overview of CCing using the W.I.N.S. Approach Below you will find the links to recent SI discussion on W.I.N.S. and LEAPs which seems to really of interest to our forum members. Our forum has been evolving over the past year. W.I.N.S. does consider CCs as the bread and butter for investing. The major difference with our W.I.N.S. approach is the we 1. use the BB and RSI the technical indicators to pinpoint stock price cycles (patterns that repeat). 2. improve your timing of when to write those CCs in order to benefit the most and not restrict the upside profit potential. 3. buying at specific times PUTs and CALLS as leverage tool (multiply upward profits) or as a hedging tool (downside insurance protection). We refer to it as our option sideshow because it is not a requirement, but, it makes a major difference in making profits regardless of the direction of the stock price. In short, we have eliminated the cons of plain traditional CCing while enhancing and teaching the intelligent use of options (PUTs and CALLs). After all, the majority of options expire worthless! Learn By Doing, Perfect Your Skills By Learning From Others! Message 4895505 Message 4990777 Message 5207941 Message 5450203 techstocks.com. LEAPS Message 5368270 Message 5436351 Message 5436488 Message 5446196 Message 5425240 techstocks.com. techstocks.com. techstocks.com. techstocks.com. techstocks.com.

To: Bill Field who wrote (8915)	11/3/1998 12:30:00 AM
From: Herm	Respond to of 14162

Hello Bill, Sorry, I missed your question! I did happen to read it at work and was planning to address later that evening. The real reason I screwed up was that a very pretty woman with gleaming red hair caught my attention and fancy last week and you know what happens to your concentration when you get flirting eyes and inviting body language from a woman, right Bill? You lose track of time, focus, and your own name. Just met and getting to know her! The last thing on my mind was the forum this weekend. It was Friday and then Monday morning. The time in between just vanished. I was intoxicated and did not even touch a drop of alcohol. :-) QUESTIONS Please answer a few elementary questions about your CC theory. I have been selling calls on my portfolio for a few years with some success and wish to be more effective. RESPONSE For the sake of the readers and lurkers out there, this forum does present a trading approach (specific strategies) which does include covered call writing (CCing or CCs) as a major revenue generating technique among the W.I.N.S. approach. I would like to rephrase the reference to "theory" to approach. The theory has been long ago confirmed by just about everyone that has tried it. Approach would be more accurate. QUESTIONS 1. What are your specific settings for BB and RSI charts and what duration charts do you use (5 min. 10 min.)?? ANSWER The Bollinger Bands (BB) and the Relative Strength Indicators (RSI) setting are adjustable. Using logarithmic price scale setting for the I start with settings of 20 weeks for the BB and 14 days for the RSI. Of course, some stocks have strange price patterns and may require that an adjustment to the BB usually. You are trying to get as many of the highs on the upper BB and as many of the lows on the lower BB. In other words, the setting that gives the best pivot predictor. Look at BTGC below and you will see that Friday was the upper BB tag and today BTGC started to pull back as normal. And, the RSI is dropping as normal. The recent reversal was not typical for BTGC. I have 7 Jan 7.5s that I did not cover since I was fairly sure that BTGC would bounce off the upper BB. BTGC CHART askresearch.com QUESTIONS 2. I have seen references to W.I.N.S. on the thread, would you please define it or direct me to specific reply no#s (please say it's NOT a WADE COOK thing). I look forward to your response and thanks again for a great thread... ANSWER Wade Cook! Who is that? He is related to Captain Cook or Sam Cook? No! :-)We have nothing what so ever to do with WC's product/services. His trade mark W.I.N. stands for Wealth Internet Network. What you heard here is W.I.N.S. which stands for Withdrawing, Increasing, Neutral, Sideshows. Thinking about the option tool shed in those terms helps investors to apply the right tool(s) at the right time for the desired results. Here is a repeat of something I wrote a few months ago. Overview of CCing using the W.I.N.S. Approach Below you will find the links to recent SI discussion on W.I.N.S. and LEAPs which seems to really of interest to our forum members. Our forum has been evolving over the past year. W.I.N.S. does consider CCs as the bread and butter for investing. The major difference with our W.I.N.S. approach is the we 1. use the BB and RSI the technical indicators to pinpoint stock price cycles (patterns that repeat). 2. improve your timing of when to write those CCs in order to benefit the most and not restrict the upside profit potential. 3. buying at specific times PUTs and CALLS as leverage tool (multiply upward profits) or as a hedging tool (downside insurance protection). We refer to it as our option sideshow because it is not a requirement, but, it makes a major difference in making profits regardless of the direction of the stock price. In short, we have eliminated the cons of plain traditional CCing while enhancing and teaching the intelligent use of options (PUTs and CALLs). After all, the majority of options expire worthless! Learn By Doing, Perfect Your Skills By Learning From Others! Message 4895505 Message 4990777 Message 5207941 Message 5450203 techstocks.com. LEAPS Message 5368270 Message 5436351 Message 5436488 Message 5446196 Message 5425240 techstocks.com. techstocks.com. techstocks.com. techstocks.com. techstocks.com. Thanks for your question Bill!