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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: Jerry Catalfo who wrote (9546)	2/1/1999 8:01:00 AM
From: Herm	Read Replies (2) \| Respond to of 14162

Hi Jerry, You choice of MER 70s Feb is cutting it close. Today, a div. payment if due and the stock may drop this week as a result of dividend stripping strategies. So, a CC would be selling higher than usual. With that said, yes it's possible you could be called out if you are in the money in three weeks. iqc.com I looked at the chart and MER is tagging the upper BB. But, the RSI is slanted downward heading towards that 50 marker. That is a negative bias like you indicated. If you want to grab heavy premies, check out the MER LEAPs 70s FEB00 @ $18+. Now, that is some heavy CC dollars. MER recent earnings was up. But, compared to last year for the quarter MER was way down. MER was up on adjusted earnings. MER growth rate is at 11.80% with a 17.8 P/E and a $0.96 (1.3%) annual dividend. MER is priced about at fair value at this point. NYSE: (MER : $75 7/8) (MERpA : $31 3/16) (MERpE : $25 3/8) $27,133 million Market Cap at January 29, 1999 Ranks 28th in the Fortune 500 on Revenue & 45th on Profit. Employs 48,900. Trades at a 7% Discount PE Multiple of 17.8 X, vs. the 19.1 X average multiple at which the Brokerage SubIndustry is priced. Brokerage SubIndustry up 2.94% / Financial Industry up 1.45% Today Hey, grab some heavy dollars and sit back!