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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: Casaubon who wrote (9722)	2/24/1999 7:47:00 AM
From: Herm	Read Replies (2) \| Respond to of 14162

SANG SANG is sporting a 35% growth rate. Although, it has not generated a profit yet. NASDAQ: (SANG : $24 1/16) $384 million Market Cap at February 23, 1999 Loss Expected for 1999; Biomedics Sub Industry priced at 43.8X PE. So, it is speculative at best. Short Interest for SANG is 10.6% of the shares outstanding, requiring 4 days to cover and option open interest is light. That could be a problem. Without positive news SANG may not move out of the current price range. Technically, the SANG chart is showing a double-bottom bounce and a recent bounce off the lower BB with increasing RSI. The stock will meet some stiff resistance at $30. Hey, from $24 to $30 it may be worth the ride for careful risk takers. askresearch.com In that price range, I would rather own RN which pays a dividend on March 12, 1999. Annual rate of div. at current price is 7.6% return. Throw in a few rounds of CCs and RN is an easy 25%-35% return by Dec. 1999 with much less risk! Write calendar spreads using the RN LEAPs and selling CCs and you can rake in 45%-55% by Dec. 1999 even without the dividends. askresearch.com