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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: RWS who wrote (10335)	4/12/1999 12:42:00 AM
From: NateC	Respond to of 14162

Welcome RWS to this thread.. You're right...it is pretty terrific..thanks to Herm and all the others. You wrote I am starting to paper trade tomorrow buying shares of CHRZ and writing May 10 call and shares of ARTT and writing May 15 calls. I'll post my results. Any comments would be appreciated. I looked up your ARTT trade. Nice going on the finding. Be careful however not to plan on getting the prices quoted from Friday...for the May 15 calls. (it would be nice....since they quoted 1 3/16 x 1 7/16...and the last trade was at 1 7/16.) Since this is well over 10% monthly.....<20% on margin.......I'd bet it doesn't trade that high tomorrow. Especially, since the May 12.5 CC is quoted at 2 x 2 1/4...and it's in the money by 1/2. Still this is good volatility...and BTW...the chart looks GREAT. askresearch.com

To: RWS who wrote (10335)	4/12/1999 9:00:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

ARTT is not expected to earn a profit this year. So, it is a speculative investment. The upper BB has been elongated after the narrow contraction (typical gap warning) of the two bands. The RSI is high and falling off at this point. The block and ticks below show the action on Friday. Indeed, the RSI is showing overhead resistance at $14 with $10 being the first lower price support bottom at this point. askresearch.com ARTT Trading Summary 09-APR-99 Ticks Money Flow($M) Avg. Price Small Blocks +43 -42 +606.9 -679.4 12.9521 Large Blocks +0 -0 +0.0 +0.0 13.0000 Total: +43 -42 +606.9 -679.4 12.9543 08-APR-99 Ticks Money Flow($MM) Avg. Price Small Blocks +49 -46 +0.5 -0.5 12.7813 Large Blocks +4 -2 +0.6 -0.3 12.8253 Total: +53 -48 +1.2 -0.8 12.7960 WINs Approach Suggestion: With some ARTT petering out taking place, locking in some CCs would protect the downside. I would CC either the 12 1/2s May CALLs @ 2 or the 12 1/2s Aug. CALLs @ 3 1/2. If ARTT Moves Down I like big premies so I would personally try the Aug. calls with plans to either hold or cover later when the price is right! Otherwise, 3 1/2 downside protection would take it to the bottom support level around $10.00. If ARTT Moves Ups If ARTT does continue upward and gaps. Use the CC premies to buy long sideshow calls when ARTT reaches $12 1/2 strike + $3.5 CC premie = $16.00 CC break even (B.E.). Until then, sit back and count your money!