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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: tuck who wrote (10560)	4/27/1999 3:56:00 PM
From: Dan Duchardt	Respond to of 14162

Those prices didn't last long tuck, but I grabbed a position (on paper) on the dip (hopefully temporary) to 10, selling the May10s at the bid, 1 5/8. Didn't want to take the stock uncovered overnight.

To: tuck who wrote (10560)	4/27/1999 4:27:00 PM
From: phillip	Respond to of 14162

Tuck, EDFY is an interesting one if you are willing to risk a possible collapse of the stock. I believe I would stay conservative and write the 7.5's for May to give me the downside protection and not a bad return. By the way, I believe there is about 3 1/2 weeks left before May expiration, May 21 is third Friday. Good luck.... Phillip

To: tuck who wrote (10560)	4/27/1999 4:50:00 PM
From: David Wright	Respond to of 14162

Tuck, Nice premiums if you can get them. Fundamentals don't seem too strong for a stock I might need to own for a while. Negative earnings are not a sign I like to see. Course that whole industry is built on fuzz too.... When I look at TA I try to find a stock at one extreme or another of the BBs. Yesterday, this one was in the middle after a real series of wild days. It bounced up today, most likely on a big opening gap. That turns me off because I find it hard to nail a good stock price position, and then catch the great premium at the same time. Between pushing the button to buy, getting your confirmation back, and then trying to sell the option, the world has a tendency to change, usually not in your favor, on these bouncers. Also, I find that the options that are way off the fair price usually don't fill, even when you hit the alleged bid. I also like to see a chart pattern over a number of months that shows that a stock's prices actually do respond to the TA. In other words, does it lift to the top of it's trading range after it touches the lower BB? Is a stochastics crossover below 20 significant historically, etc? This one was unclear enough to me that I didn't think I could predict what it would do in the future. Now, naturally, after raining on your parade on this one, the stock will go to 90 in the next three days, and I'll lurk for a few weeks and change my name.

To: tuck who wrote (10560)	4/27/1999 7:19:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

Take a look at the block trades and ticks Tuck! Sure looks like some heavy duty shorting. Cash flow and down ticks exceeded up ticks and still EDFY moves up +1 1/8. That's not all up volume at all. EDIFY CORP (NASDAQ:EDFY Last Sale: 10 +1 1/8) EDFY Trading Summary 27-APR-99 Ticks Money Flow($MM) Avg. Price Small Blocks +311 -312 +2.7 -2.7 $10.1597 Large Blocks +2 -3 +0.2 -0.4 $10.0652 Total: +313 -315 +2.9 -3.1 ** $10.1515 26-APR-99 Ticks Money Flow($M) Avg. Price Small Blocks +117 -111 +824.9 -1,058.1 $ 8.4877 Large Blocks +1 -0 +87.5 +0.0 $ 8.7500 Total: +118 -111 +912.4 -1,058.1 $ 8.4939 NASDAQ: (EDFY : $10) $165 million Market Cap at April 27, 1999 Loss Expected for 1999; Internet Products & Services SubIndustry priced at 562.3X PE Internet Products & Services SubIndustry down <3.40%> / Technology Industry down < 2.01> Today Get those PUTs ready for a whipsaw reversal. EDFY has a rock N Roll TRO (Turnover Rate:) of 28.21 Days. A fast moving stock up and down. Overhead resistance at a solid $12 to $14 price range. askresearch.com