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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 (9316)	1/1/1999 6:38:00 PM
From: Johndee	Read Replies (1) \| Respond to of 14162

Hi Herm, What you say is possible, but what I did was also buy BTGC at 5 13/16 a couple of weeks ago. Wed. I sold the apr 7 1/2 CCs for 1 1/8. That way, if it doesn't pass the Heavy resistance of 7 1/2 by Apr, my basis will be lowered to 4 13/16 after comm. If it does pass 7 1/2 and I get called, I'll have made 1 11/16 on the stock and 1 on the option. If it doesn't get called I can cover or let it expire and write again. How's that sound to you? Happy New Year Johndee

To: Herm who wrote (9316)	1/5/1999 5:30:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

As a follow up on BTGC The last time I recall someone asking about CCing BTGC was around December 02, 1998. The person purchased BTGC at 5 15/16s and the stock has since moved up to the $6.75 - $7.00 overhead resistance level. I going to try to incorporate Doug's magic WINS-charts to see if we can improve the formula and at the same time determine how effective it is at predicting a pivot. Again, for those that have NOT signed on to Doug's site, they must first register for free at webbindustries.com. BTGC - Going Sideways - Trend is Still Up! It appears the yellow bars are moving horizontally. Without some kind of news BTGC will zig-zag for a while around the current price. Now, the question to CC or not CC is before us. I put in a limit sell order for 7 CCs today GTC for the April 7.5s @ 1 1/16s which is above my net cost basis (nut). I fear that BTGC may stall and not break $7.00 without news real soon. Therefore, BTGC may fade back to $6.00. If that does occur, then I have $700 dollars in my account to earn interest or lower my margin interest payout. If BTGC drops then I'm cushioned and may actually get to keep $300 or so if I can cover at say 5/8s. That's 1 1/16s ($1.0625 x 7 = $743.75) less 5/8s ($62.50 x 7 = $437.50) CCs to cover = $ 306.25 less commissions. If I do nothing and the stock drops to $6.00 then my stock is worth $700 less anyway! On the other hand, if BTGC moves up past $7.50 once I sell the CCs I must be ready to either cover at a lost or start a repair real fast! That is, buy deep in the money BTGC long calls as my sideshow! DO NOT COVER if you start the repairs. You use the CC premie dollars to help lower the cost of the in the money long calls. As the stock moves up your long calls will increase in value thus you would not miss out in the capital appreciation in BTGC if you are surprised by a gap up! BTGC WINS Chart webbindustries.com I'm really happy with the IFMX capital appreciation over the past two week. It basically went from $5.00 to $11.00! The WINS charts indicate a very small change in the RSI and %b Trend even while the IFMX price continues to go up fast! That would indicate a reversal is very near for this price cycle. Profit taking may set in soon! IFMX WINS Chart webbindustries.com ROST WINS Chart webbindustries.com Talk about a dead cat bounce! TECD has a whopper of a technical rebound recently! Lots of black blocks in the price and trend might result in more profit taking in the short run. TECD WINS Chart webbindustries.com