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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: Jan Ravi who wrote (9878)	3/5/1999 8:52:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

OTEX has a rapis 45% growth rate and a relative cheap P/E compared to the industry group. NASDAQ: (OTEX : $20 11/16) $364 million Market Cap at March 4, 1999 Trades at a 27% Discount PE Multiple of 31.3 X, vs. the 42.9 X average multiple at which the Software & Services SubIndustry is priced. Turnover Rate: 40.67 Days is a moderately price moving stock. You should be able to see the move coming. $18 dollars seems to be the next price support level. You will notice that the OTEX RSI always seems to head in one direction when it breaks below the 50 RSI marker. OTEX moves lower. So, I would venture to say if OTEX breaks drops today it will go to that $18.00 level from the current $20+. I would CC out a few months at the money to protect your beacon. It is a very good long stock to hold long but the data is pointing to watch it. iqc.com Short interest has been building up. That is alot to overcome without some fantastic news release. The earnings release is out and it was good. It made a new 52-week high and profit taking pulled the stock back. So, what does OTEX have to crank up the stock again. The RSI is dropping and the volume is dropping. Be defensive with OTEX. Sideways is most likely the outcome for now. "A bird in the hand, is better than two in the bush." Lock in some fat CC premies. Short Interest for OTEX is 2.1% of the shares outstanding, requiring 2 days to cover. Jan 99 375,528 +181% 259,052 2 days to cover Dec 98 133,794 +253% 221,858 1 Nov 98 37,876 +18% 134,887 1 Oct 98 32,182 +213% 57,642 1 Sep 98 10,278 -85% 81,497 1