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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: NateC who wrote (10268)	4/8/1999 3:04:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Cheap PUTs around earnings news time is a wise precaution. It's not so bad when you use your CC premies to buy them. NASDAQ: (SAVLY : $7 7/16) $258 million Market Cap at April 8, 1999 Trades at a 75% Discount PE Multiple of 6.6 X, vs. the 26.2 X average multiple at which the Data Processing SubIndustry is priced. askresearch.com SAVILLE SYSTEMS PLC (NASDAQ:SAVLY Last Sale: 7 9/16 +1 5/16) as of 3:00 pm! SAVLY Trading Summary 08-APR-99 Ticks Money Flow($MM) Avg. Price Small Blocks +221 -208 +1.3 -1.5 6.9290 Large Blocks +10 -7 +0.8 -0.7 6.9507 Total: +231 -215 +2.1 -2.2 6.9334 07-APR-99 Ticks Money Flow($MM) Avg. Price Small Blocks +384 -391 +1.9 -2.8 5.9230 Large Blocks +36 -37 +5.0 -5.6 5.8911 Total: +420 -428 +7.0 -8.4 5.9037

To: NateC who wrote (10268)	4/8/1999 10:09:00 PM
From: David Wright	Read Replies (1) \| Respond to of 14162

Nate, I'm doing the same SAVLY shuffle you are. I got in at 12 1/2, sold the may15c for 1 5/8. Just bought it back for 1/4, then bought another 500 shares at 6, which gives me an average cost of 9 1/4. I'm now going to sell 10 Aug10 CC's for 1 9/16, which will bring me almost back to even. Biggest mistake I made was buying some May17.5 calls with the proceeds from my first CC sale. Herm was not happy with me for that one. I still think it's a good stock, and I REALLY think it is under priced now. Might take a few months to rescue this one, though.