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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 (9569)	2/3/1999 12:26:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

What Propels Dell??? Wow! This stock just keeps on ticking upwards! Unreal! If you have to bite the bullet and cover your Dell CCs, it will cost you about $34 1/2 for the Feb. 75s and $31 7/8s for the May 85s. So, you need to address the Feb 75s first at this point. iqc.com Looking at the Dell chart we see an RSI that is at a peak of almost 80. So, some profit taking is due. To lock in you stock gain and recover the give back on the CCs you would need to roll out with LEAPs for say the 100 JAN00s @ 34 3/8s. That way, if Dell does pull back you have 34 points for the downside before it starts to digs into your pocket. You would either cover the LEAP CC or sell at the $100 strike price! If you take the premies and buy PUTs as a sideshow along the way, you may be able to squeeze out some more profit!