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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 (10425)	4/17/1999 10:33:00 AM
From: sandbag	Respond to of 14162

Herm, "The rule on this forum is you are not allowed to lose money! :-)" I like that rule. FYI....we had discussed previously my CC position in AVID. I thought I would fill you in on my progress and see if you think I am doing OK with it. Original Nut (after selling and buying back 1 round of CC's) was 21.6 Stock gapped down from 23 to 17 and settled at 18+. I took your first suggestion and wrote Sept 20 calls for 3 1/2. Bringing my nut to 18.2 and my breakeven to 23.5 (?) Of course, the stock immediately started going up. +2 3/8 yesterday. Currently @ 21. With it coming off of the lower BB and the RSI going up, but not overbought, I purchased some May 25 calls as a side-show for 1 1/8. This raises my nut to 19.475 (w/comm.). Current situation: Nut = 19.475 long May 25 calls - currently 1 3/16 bid short Sept 20 calls - currently 5 1/2 ask Stock price 21. Any comments? Thanks and best to you. Barry

To: Herm who wrote (10425)	4/17/1999 12:40:00 PM
From: RWS	Read Replies (2) \| Respond to of 14162

Hi Herm I posted to you last weekend I was beginning to trade CC and asked for comments, which were very helpful. Here are results for this week. On Monday: Bought ARTT @ 12.5 Sold Aug12.5 Call @ 3.25 Nut 9.52 Bought CHRZ @ 10.13 Sold May10 Call @1.31 Nut 9.08 On Friday: ARTT bid 12.88 Call ask 3.75 CHRZ bid 13.13 Call ask 3.88 Should I buy back the CHRZ call and sell the Sep12.5 for Nut 9.43? Or perhaps should have done that earlier when CHRZ was at 11.31, which would be my B.E., right? This is my first trade, so it is paper. I'm using a small starting amount and including transaction costs in my Nut. Thanks. RWS