Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (9019)	11/12/1998 9:43:00 AM
From: Senator949	Read Replies (1) \| Respond to of 14162

CPQ Has tagged the upper BB on both 10 and 20 day chart and RSI is over 70 on all options (72 on 14 day and 85 on 8 day). It should break and head down toward 28-30. Max-Pain point as of Nov 11 was 27.50. askresearch.com askresearch.com pipeline.com Robin Herm, how do you put in long web page references?

To: Herm who wrote (9019)	11/13/1998 11:03:00 AM
From: Bob Smith	Read Replies (1) \| Respond to of 14162

Herm, Does it make sense to write covered calls when a stock has hit the the lower BB and the RSI . The strategy is to get place the covered call price high. That is if a stock channels between $5 & 10 a share... why not write covered callls when the stock is at $5 ( and a call strike price at $10)....you can ride the value up with the stock. If you get called out you win...if it goes down any more you are covered. Bob

To: Herm who wrote (9019)	11/14/1998 11:39:00 AM
From: Herm	Read Replies (3) \| Respond to of 14162

CTXS and SUNW FOLLOW-UP I like to double check stocks that are mentioned on this forum to see if they do turn out as predicted. CTXS was pulling back (dropping RSI) and turned 180 degrees to make a new high out of the clear blue and never made it to the lower BB. But, it is going to tag that upper BB and dive very soon. Yes, that will happen one and a while! Not often. If you are CCing and never used a technical gauge like the W.I.N.S. approach does then I would be willing to bet that you have or had more surprises than you care to mention. Otherwise, you would not me reading this forum everyday! SUNW was a text book W.I.N.S. upper BB tag and reversal this week with confirming RSI dive. Personally, if I owned SUNW I would have sold CCs for the 50JAN01 LEAPs @ 27 3/8s. That LEAP has eroded by 3 1/2 so far. Do you know what a 27 point downside protection feels like? The BB and RSI indicate a maximum bottom of $50 for SUNW on this pullback. That's a $10 point drop from the current $60.00 price. askresearch.com At Yahoo, I pulled down this news item on insider selling just filed. Give me a new 52-week high in the stock price, a eminent upper BB tag just around the corner, and I will show you a stock price that will sooner or later dive on profit taking. In fact, I would not be surprised if the current CTXS was caused by unknown inside/outside forces as a play. quote.yahoo.com