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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: Herm who wrote (9036)	11/14/1998 1:23:00 PM
From: Riskmgmt	Respond to of 14162

Herm: Re; CTXS SUNW and CSCO ADDITIONAL COMMENTS Agree with your comments on SUNW and CTXS and would like to add to them. SUNW as you say is a classic case of using the WINS formula to protect or enhance profits. It behaved as expected(at least so far). CTXS was on it's way down and got a lift, as does happen from time to time. Many outside factors affect stock price and so no system will work all the time. I expect the awards announcement and the Comdex show, as well as Greenspan, all could be a factor. However, CTXS is a stock that can go up 3 or 4 points on Friday and drop 15 points on Monday. If you think I am exaggerating - check out the last year or two. So, while we got an unexpected lift, the game is far from over. As you point out, insider selling is an indication that they, perhaps feel that the stock price is getting ahead of itself. That said, I'd say that, I believe CTXS is a great company and am bullish longer term, but nothing goes straight up for long. I sold cc and plan to roll out to a later month if the stock doesn't fall off by Friday. The other stock I'd mentioned originally, in addition to these, was CSCO. Again a longer term great that looks like it is getting tired. It has run out of gas and is slipping. Hopefully, this trend continues to Friday. However, CSCO options carry great premiums because the stock has great volatility so be warned if you play this. Actually the same goes for SUNW and CTXS not the easiest stocks to play but very rewarding when you get it right. askresearch.com. My thoughts FWIW. Best regards, Ray

To: Herm who wrote (9036)	11/14/1998 4:32:00 PM
From: Cesare J Marini	Read Replies (1) \| Respond to of 14162

Herm, 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. What kind of strategy would you follow in deciding when to cover a long-term LEAP position like this one? Thanks, Joe

To: Herm who wrote (9036)	11/14/1998 11:00:00 PM
From: backman	Read Replies (1) \| Respond to of 14162

please clarify re: downside protection on 50Jan01, with leaps selling at 27. If stock is trading at 60 (11/13), i would think downside would be from current price (60), so leaps would make me whole at 33. But if i've agreed to sell the stock at 50, i'm only protected to the downside 17 points (and, yes, i realize that in either case, it's still 33) i'd like to understand the nomenclature as always, thanks david s PS: i think the information on this board is great...learning to sell calls and doing sideshows sure sounds like a reasonably conservative, and potentially very lucrative strategy