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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: Kmartin who wrote (9850)	3/3/1999 8:49:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Wow! You really hammered that SDTI nut down! Very good defensive WINs move on your part at the right time. You are sitting pretty with your CCer's premie money ($8.25?). What a CC killer you are. Step back and look at the big picture. You are protected down to $10.00 since you picked up so much CC $ and did a PUTs sideshow for desert! The stock is at $17.00 and cycling down towards $15.00. Without big news or earnings release (which has passed and reported Dec98 Q4 0.08a vs. 0.12 -33.0% 01-FEB-99) which was less than the street expected. The stock should continue to move downward and tag that $15.00. Overall, computer news is not good at this point. So, software is not going through the roof anytime soon. Average SDTI volume has been 1,407,000+ and yesterday traded 1,026,000 which is slightly below average. No follow-thru there! Short Interest for SDTI is 8.2% of the shares outstanding, requiring 2 days to cover. The stock will continue to slow and the volume should drop. You are on automatic WINs pilot Kmartin! Wait for the lower BB tag! Nice work "A+" student. :-) NASDAQ: (SDTI : $16 7/8) $590 million Market Cap at March 2, 1999 Trades at a 42% Discount PE Multiple of 24.8 X, vs. the 42.6 X average multiple at which the Software & Services SubIndustry is priced.