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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: Frank L> Guerrini who wrote (9318)	1/2/1999 10:09:00 AM
From: Herm	Respond to of 14162

Welcome Frank, You should find the W.I.N.S. information straight forward. In fact, we would like to draw your opinions and expertise since we are trying to improve for the benefit of the forum regulars. The concept is, "many brains is better than one!" We have some freebie materials at our fellow forum regular, Doug at webbindustries.com. Otherwise, is is the gist! REVIEW OF THE CCing PROCESS: Some basic concept around Score more W.I.N.S. When Writing Covered Calls! W=withdraws I=increases N=neutral Price Movement About to Withdraw: 1. W - When the price is peaking (price touches upper BB and high RSI) and on the verge of (W)ITHDRAWING: a. Sell CCs at or in the money! (Bread and Butter) b. Buy cheap PUTs and/or short the stock! (sideshow) c. Cash in long calls! (sideshow) Price Movement About to Increase: 2. I - When the price is bottoming (price touches lower BB and low RSI) and on the verge of recovery and the price is (I)ncreasing: a. Cover your CCs! (Bread and Butter) b. Buy long calls!(sideshow) c. Sell in the money PUTs! (sideshow) d. Buy cheap warrants if offered (sideshow) Warrants over $5.00 can be purchased on margin! Price Movement Continues to Move Sideways: 3. N - When the price is moving sideways, do nothing but watch! a. Watch the upward/down slope of RSI! Hint - RSI will give you a small lead in the direction of the stock price. b. Watch the earnings dates, options expiration dates, and the closest strike price. Note - Most MM shakeouts come the week before options expiration week. c. Watch for split announcements or mergers. SUMMARY: Sell (write) CALLs - Buy PUTs Buy CALLs - Sell (write)PUT Perfect Your Skills By Learning From Others! Other contributions by fellow lurkers! Message 4895505 Message 4990777 Message 5207941 Message 5450203 techstocks.com Message 5368270 Message 5436351 Message 5436488 Message 5446196 Message 5425240 techstocks.com. techstocks.com. techstocks.com. techstocks.com. techstocks.com. Tutorials On Technical Indicators This is part of a larger technical analysis site provided by Equity Analytics, Ltd. It is the best free instruction on technical indicators I have found on the internet. By the way. we use the Bollinger Bands and Relative Strength Indicator for our W.I.N.S. approach. Good Intro to Technical Indicators! e-analytics.com Bollinger Bands Indicator! e-analytics.com Relative Strength Indicator! e-analytics.com