Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (10564)	4/27/1999 8:47:00 PM
From: tuck	Respond to of 14162

Hey Y'all, Thanks for the input. Thanks to Philip for correcting me on the expiration date; I had misread my calendar. Yes, this one is likely a viper. It's had a long fall and has announced some good news, so who knows? I do expect it to retrace some. On the other hand, shorts may be getting squeezed here. SCAI, both a partner and a competitor, just doubled a couple of days ago. This is a story stock in a hot industry. I figure even if it does collapse, the premiums are so high I could repair quickly. My nut is in the mid 6s, after all. But I don't think it will happen. Folks coming out of highly priced Internut stocks might like this one just because it has more up side potential than down -- in absolute terms. I think the stock is supported in part by such a psychological change. I caught it when the lower BB had been touched and the RSI seemed to have turned up. But TA may not mean much on such a wild one. I'll let y'all know how it turns out. Cheers, Tuck

To: Herm who wrote (10564)	4/28/1999 12:01:00 AM
From: Hectorite	Read Replies (1) \| Respond to of 14162

Folks, Could I interest you taking a look at the HWP chart? At first glance it looks like its primed for reversal and could be a candidate for CC. My question concerns to what degree sentiment and current news can makes charts lie. Sentiment has been turning bullish on HWP. The planned reorganization and turning focus to services has convinced analysts to take a another look and HP has cranked up the PR machine with full page WSJ ads, etc. In the past 18 months when RSI has reached current levels a reversal, at least a short one, has occurred. But in this environment, would you folks trust the chart? I'm wondering if it might just stay stuck to the upper BB all the way to 90. Do you wait for signs of the reversal kicking in before committing to the position? (I know the answer is "it depends", but let's say in this case). Thanks!