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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: Mark Mandel who wrote (10479)	4/21/1999 5:58:00 PM
From: Herm	Read Replies (3) \| Respond to of 14162

Hi Mark, There are some major events taking place with INTC. A .08 cent div. payout coming up. The record date is May 7, 1999. So, you might see the funds pumping up the stock to strip that dividend. The ticks show money flows out of INTC for the past two days even with INTC moving up in price. Could be a sign of shorting against the box! Especially, when you see an equal number of large blocks on the up and down ticks balancing out. You don't see a one sided up tick blocks. The small blocks is MMs chumming and daytraders. INTEL CORP (NASDAQ:INTC Last Sale: 58 7/16 +1 7/8) INTC Trading Summary 21-APR-99 Ticks Money Flow($MM) Avg. Price Small Blocks +612 -588 +18.6 -23.9 57.2414 Large Blocks +14 -14 +24.6 -25.3 57.1638 Total: +626 -602 +43.2 -49.3* 57.2082 20-APR-99 Ticks Money Flow($MM) Avg. Price Small Blocks +649 -639 +17.2 -20.2 56.3515 Large Blocks +10 -9 +8.4 -12.2 56.2977 Total: +659 -648 +25.6 -32.4* 56.3386 NASDAQ: (INTC : $58 7/16) $196,350 million Market Cap at April 21, 1999 Ranks 38th in the Fortune 500 on Revenue & 6th on Profit. Employs 48,500. Trades at a 19% Discount PE Multiple of 25.3 X, vs. the 31.3 X average multiple at which the Semiconductors SubIndustry is priced. bigcharts.com With a recent INTC 52-week high of $71+ and one attempt (so far) to match that high, you MAY see one more attempt before a strong pullback and price consolidation. Your overhead resistance appears to be around $65.00 and your bottom price support at $55. If INTC would to break below $55 it would most likely plung to $45.00. From the current price of $58+ you are just about in the middle of that range of high and low. So, with that in mind I would like some upside potential and more downside protection. You need to cover that current CC of the 75s May @ 1/16! That is a waste of time remaining for you. Free yourself up and CCing an INTC LEAP 65JAN00 @ $7+ would be sweet deal. Upside CC B.E. at $65+7=$72 before you would have to act with an sideshow long CALL or cover at a loss. Downside protection would to $58 current price-$7=$51.00 before covering and rolling down with another round of CCs and/or cheap sideshow PUTs! INTC new turnover Rate is now 92.79 Days! That is slow enough to see the price change coming and be able to act promptly