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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 P. WARDA who wrote (9407)	1/10/1999 12:49:00 PM
From: Herm	Respond to of 14162

Hi Frank, Thanks for your interest and appreciation of the information. Let's take LU first. A new 52-week high means profit taking in the short term. If you are bullish and wish to remain invested then CC in the money a few months out and grab some heavy CC premies or short against the box to lock in your profits and sit tight until LU bounces off the lower BB in a few weeks. The 95 JAN 00 LEAPs @ 33 1/2 x 5 contracts = $16,750 income would give you 33 points worth of downside protection while you wait to cover later. Or, just cash out at this point and short the stock! LU - Tagged Upper BB, High RSI @ 72.97, New 52-Week High! NYSE: (LU : $115 1/4) $147,105 million Market Cap at January 8, 1999 Trades at a 7% Discount PE Multiple of 54.9 X, vs. the 59.1 X average multiple at which the Networking SubIndustry is priced. iqc.com LGTO - , New 52-Week High, Tagged Lower BB, Should Retest High! iqc.com NASDAQ: (LGTO : $58 5/8) $2,073 million Market Cap at January 8, 1999 Trades at a 80% Premium PE Multiple of 85.0 X, vs. the 47.1 X average multiple at which the Software & Services SubIndustry.