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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: Victoria Walley who wrote (9959)	3/17/1999 5:35:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

Hi Vicki! APCO has a 24% annual growth rate and a P/E of 14.2. Not bad! NASDAQ: (APCO : $8 15/16) $96 million Market Cap at March 17, 1999 Trades at a 13% Discount PE Multiple of 14.2 X, vs. the 16.3 X average multiple at which the C-Stores & Auto-Related Retailers SubIndustry is priced. There is plenty of option open interest and the earnings release on Feb. 2, 1999 was pretty good at .12a vs .10 expected (+20%). Last year APCO earned .09a. So, why the dumping? The next earnings is May 4, 1999. You say APCO tends to pull back in between earnings release. The chart and trading sure bares that out! Based on the WINs approach you should be defensive and deep in the money with a CC with a three month time length at least. Friday is options expiration day and APCO will need to recover tomorrow above the $9.00 price support level. It broke and closed below $9.00 and it is a free fall to $7.00 (the next price support bottom). As you can see below, the negative down ticks were -25 to +18 @ an average price of $8.97 with two large down blocks.APCO is slipping downward. The day before (Mar. 16) was -31 small down block ticks. 17-MAR-99 Ticks Money Flow($M) Avg. Price Small Blocks +17 -23 +71.1 -280.7 8.9778 Large Blocks +1 -2 +90.0 -311.9 8.9583 Total: +18 -25 +161.1 -592.6 8.9702 16-MAR-99 Ticks Money Flow($M) Avg. Price Small Blocks +27 -31 +126.3 -420.2 9.3265 iqc.com