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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: phillip who wrote (9662)	2/19/1999 12:28:00 PM
From: NateC	Respond to of 14162

Herm, Phillip, and others. I've been reading somewhere on the Web...maybe McMillan's page....that one should always look for 10% monthly premium on CC's. So you need to look for stocks under $20 price....and if they for example at 15, you need to be finding premie of $1.5 or better, right? Question is...do you find this by looking at volatility tables first...and then just searching, or do you have better places to look. Also....this seems to be very premium and volatility based...and maybe would steer you away from some good 7-8%/month plays (I don't mind making 7-8%/month!)......of some stocks that might be more sound fundamentally. Comments??

To: phillip who wrote (9662)	2/19/1999 9:01:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

FGI FGI has a 22.5% growth rate and a low P/E of 6.2. WOW! That's one cheap price for a stock that has been beating earnings for the past four quarters. Plenty of open interest for CCing! Hey, at these levels you can't go into the hole. You can keep ccing and milk that! NYSE: (FGI : $10 7/8) $265 million Market Cap at February 19, 1999 Employs 800. Trades at a 52% Discount PE Multiple of 6.2 X, vs. the 12.8 X average multiple at which the Shipbuilding SubIndustry is priced. FGI seems to make clean lower and upper BB tags and then heads the opposite direction in price. iqc.com VTS VTS has a 23% growth rate and a 7.7 P/E. Another cheap old stock. Again, at current levels you can CC and stay ahead of the decline and still make some money. NYSE: (VTS : $10 1/16) $227 million Market Cap at February 19, 1999 Employs 1,300. Trades at a 62% Discount PE Multiple of 7.7 X, vs. the 20.3 X average multiple at which the Oilfield Equipment SubIndustry is priced. iqc.com