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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: David Wright who wrote (10551)	4/26/1999 7:51:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Good dialog today David!

To: David Wright who wrote (10551)	4/27/1999 2:30:00 AM
From: NateC	Read Replies (1) \| Respond to of 14162

"So what you mean is that you will sell calls that are way in the money. Like, if the stock price is 20, you will sell a call at a strike of 17.5 to get the big premiums, betting that the stock will go down hard because it has hit the upper BB and RSI is high. I knew that from WINs, but am having a mental block thinking about "long and deep". Not sure why. Dave.....and Herm....by long and deep...aren't you talking about LONG...meaning several months out....and Deep...meaning DITM....so for this stock at 20...with the upper BB tagged..and the high RS.....(the calls...both upstrike, and downstrike...are going to be overpriced.....so Herm is going to get a good "overpricing" by selling the DITM calls,....and since he's going "long"...(farther out)...he has a good chance for the underlying to recuperate...after the anticipated downside move in stock price. right??