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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: Herm who wrote (10257)	4/7/1999 5:47:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

BTGC Still Petering Out! According to WINs, BTGC is [W]ithdrawing! One of the benefits of applying and thinking in the WINs approach is that you stop trying to "wish a stock" price increases in order to "make a profit." After all, if you are selling CCs over and over again, you are basically generating an income stream that can compound annually to some impressive rates of return. 35% to 45% un- margined annually is not unrealistic. Using careful 50% margin and/or LEAPs as a surrogate in place of the stock would bring the returns to 45% to 75% annual realistically. Of course, if there is a price increase in our stock, it is possible to make a higher rate of return in a shorter period of time! If you are holding long NASDAQ stocks that put you asleep, you should be CCing as a way to generate income. If you are long and your stock(s) are going down, then you need to CC in order to hedge against further lost of value. Using BTGC as our example, we see a stock that gapped upwards and more than tagged the upper BB. At the same time, the RSI moved above the 50 marker to a 70+ reading which is historically high for BTGC. I found all of this information by reading the chart using the BB and RSI indicators. Standard practice for us! As a sidenote, I'm now using the BB and RSI timing with my "safe money" in my 401K which happens to be invested with Janus Capital Appreciation. They had a whoppin +60% one year return and a +25% year to date. So, I'm not complaining about my blessings. What a country! Only in America folks. I just picked up a booklet on Bollinger Bands from John Bollinger company. I only learned a little bit more than I already knew about his powerful indicator named after him. Lately, I have been using the ticks and money flow information to better illustrate what the charts using the BB and RSI formulas crunch. It is small focus of the bigger picture offered by the charts. Just the same, you get a better feel for the charts when you see where the real money is heading. BIO TECHNOLOGY GENERAL CORP (NASDAQ:BTGC Last Sale: 7 5/64 -7/64) BTGC Trading Summary Wednesday, 07-APR-99 Again, we see small +98 "chumming" up ticks worth $563.1 million followed by -109 toilet flushes (which included -2 big down ticks) worth -756.5 million. There was more shorting and/or profit taking today. As BTGC continues to fade, those shorts will become more valuable. It is easier for the MMs to make money shorting BTGC. They making it coming and going up or down. That is what investors must understand and learn to exploit. Ticks Money Flow($M) Avg. Price Small Blocks +98 -107 +563.3 -568.1 7.1866 Large Blocks +0 -2 +0.0 -188.4 7.1918 Total: +98 -109 +563.3 -756.5 7.1870 06-APR-99 Ticks Money Flow($M) Avg. Price Small Blocks +153 -158 +754.2 -849.8 7.2076 Large Blocks +2 -2 +146.3 -160.9 7.1856 Total: +155 -160 +900.4 -1,010.7 7.2031 The volume rule of thumb is: "without trading volume, most stocks will most likely fall in price by their own weight." It is also important to know in which volume direction the money flows. -$1,010 million yesterday and another -$756 million today. The net outflows were much greater than the inflows.