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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 (10377)	4/14/1999 9:45:00 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 14162

Thanks Herm, No question about this one being a rock and roller, but as the daytraders like to say, the game is all about perceived value, not true value. The spike of yesterday was news driven, and based on the pattern of the last few months, I'm expecting support to build around the high of the last surge back in mid-March, or around the present level of 17 to 18, and a narrowing of the BB range. I'm thinking that if it pulls back below my NUT, it will be perceived as oversold and I can probably buy back my calls fairly cheap with relatively little downside risk. Then I can catch the next spurt with new writes, or just sell the stock at a nice profit. I don't have the fortitude to buy these crazy internet stocks outright. I'm doing a little experiment here to see if I can milk some money out of them in a relatively safer manner. The volatility should provide some good opportunity if you pay close attention to the moves.

To: Herm who wrote (10377)	4/14/1999 9:48:00 PM
From: fubsy cooter	Read Replies (2) \| Respond to of 14162

please advise on my cpq strategy: i have an order in for 500 shares at 23.00. if i get them i will purchase hedged puts several months out at 17.50 in case of a market meltdown. i am assuming that cpq will trade sideways for a while so i don't intend to buy sideshow calls when i sell covered calls . my target for the cc's will be in the neighborhood of 2.00 - 2.50. hoping to generate about a thousand a month with this strategy. any suggestions to better hedge myself or optimize gains. i chose cpq because i think most of the downside has played itself out. also think cpq will be tremendous investment in the future. figure i will have to sell cc's slightly in the money to get the value i'm looking for. thanks, fubsy

To: Herm who wrote (10377)	4/15/1999 1:26:00 PM
From: RDHickman	Respond to of 14162

Herm - David & Dan et al---- Great to see the exchanges of late! Sharing your positions and experiences are a great help (gift) to all of us in turn. Just finished indexing the first 1,000 Messages on this Thread by Topic, Message #, From, and To. Almost 1,900 Topic entries for 1,000 Messages not including ALL that was covered in Herm's STUDY REPORTS. Some GREAT stuff back then, just like today's! Will tweak it tomorrow, and then get on with the rest of it. It is done in Excel....so it can be sorted four ways. Will make it available to anyone that wants it. Of course, then you can enhance it, edit it or whatever fills your need. /Dick