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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: RDHickman who wrote (10032)	3/22/1999 2:28:00 PM
From: NateC	Read Replies (1) \| Respond to of 14162

re: Other indicators. I basically use a lot of CANSLIM stuff from Investors Daily. I want a stockthat's in an uptrend. high relative strength, high EPS growth, in an industry that is doing well, etc. then I check the chart...it has to be above the 50 and 200 day MA's. I check the news......to be sure there isn't a pendinglawsuit...BTw.....there's a lot of that kind of activity in the high flyers at coveredcalls.com....so be careful I also listen to guys like Carleton Lutts, and Louis Navellier....they're a hell of a lot smarter than I....and I give their picks a good look. I also screen in one of my programs...."Stock Investor' database, from AAII.....for stocks with strong growth in FREE CASH FLOW. It's a key.....gets around most of the accounting chicanery that allows a company to report growing earnings, when their core business is in the tank. NOW....as I'm learning...if I pickthem too well......I find myself buying my CC's back near expiry...but....I've made some time premium....and there's always the next month, and the next month, and the next month. And if the stock isn't one of my favorites....I'llletit get exercised on me. Also.....in general.....I close out positions when I have an 8% loss on the underlying......or if it's been a high flyer....made me money.....and has slid back to the point where I bought it. everyone has their tricks and experiences...these are some of mine. andkeep in mind that I'm relatively new to options 4 months or so, but I've been investing long equities for about15 years