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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: R. Gordon who wrote (9842)	3/2/1999 5:30:00 PM
From: Herm	Read Replies (3) \| Respond to of 14162

WINs Lesson Time! - BTGC Tags Lower BB and RSI reverses! BTGC confirmed today what started yesterday as a pivot reversal ending the [W]ithdrawing cycle and now in an [I]ncreasing cycle. The signs where a tag off the lower BB and low RSI. Adding BTGC shares to your position (or new entry) is now! Long sideshow calls might be worth it for say July 7 1/2s. BTGC will have to plow through the overhead resistance at $8.00. The BTGC RSI is climbing and with the right kind of news announcement could finally launch BTGC into the $9.00 range (+29% on $7.00). Add one round of CC premies and you could be looking at a 35% gain. REVIEW OF TRADING ACTION BTGC avg. vol. had been around 562,523 shares. Any change in price trend according to the WINs approach calls for an increase in trading volume of at least 50% or better. I am starting to adjust that rule with perhaps the addition of "a double increase in trading blocks." BTGC traded only one block in the AM. But, in the PM 9 more large blocks where traded leaping BTGC up 13/16 or +9.45% today! Very nice gap! Our two technical indicators work really well. It sure beats guess work. You lurkers should notice that the BB and RSI will get you within two trading days of a reversal. That is very powerful information for timing CCs, covering shorted positions, etc. BTGC TECHNICAL CHART With the chart set for BB and RSI values, look at the MARCH 1999 data points. Note the lower BB and the RSI positions and the curve to the upper and lower BB channel. Notice the lower BB is just starting to curve up and the upper will soon curve up indicating an upper price move due. It gives you a good idea of the upper target price as well. It is possible to watch that and the RSI and write CCs with different objectives. Perhaps, you are willing to write CC when the stock price is in the middle out a few months and allow the option to expire worthless. Or perhaps you may wish to write CCs when the stock peaks and is about to reverse to protect your downside. That is how I usually play it. Call it conservative, but, I hate to lose money or give it back to the market jungle. askresearch.com RN - Doing Nicely! March 12 EX-DIV. DATE For those of you conservative lurkers that took that advice from one of our readers two weeks ago, RN is doing ok. Up +1/2 today or +1.86% and will be paying a dividend worth 1.75% and you can write a nice fat CC for another 8% straight or 16% on margin. I can't imagine CCers not averaging 40% to 60% annually if they just read, learn and apply the WINs approach without losing sleep. Heck, I figured BTGC would tag and bounce this week. Sure, I could not give you the exact day in advance. But, I knew ahead of time what steps to take to setup for the next cycle. Many, many of the readers have this WINs thing down pat and are making money and having fun at it! IFMX - Going to Retest 52-Week High? Take a look at that chart! askresearch.com Wishing all of you the "best of good buys!" Good health, sunny Florida skys today, bills paid, stocks up, what a country!