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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: David L. Hoevener who wrote (9025)	11/12/1998 8:31:00 PM
From: jebj	Respond to of 14162

Don't know if you have seen it or not but there is an article up on abcnews.com tonight that many on this board will find very interesting - - new meat coming to sell calls too! :) jb

To: David L. Hoevener who wrote (9025)	11/12/1998 8:31:00 PM
From: Caroline	Read Replies (1) \| Respond to of 14162

Sure thing. NOVL is currently hovering at $14+, in a breakout area for this stock. This link: pipeline.com ...has the overview and details of Max Pain. Basically, the theory says that since mostly options expire worthless, the smart money is selling calls, not buying them; that by evaluating the open interest by strike price and expiration, one can determine the price point that would cause the most option buying money to go up in smoke. Here is the max prediction for NOVL, November: pipeline.com In other words, there is more open interest in the $10 November call than any other strike. Notice that 12.5 is not too far behind. Now read the first five paragraphs here: pipeline.com ... and you should be all set. I am long NOVL puts, Caroline