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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 (10572)4/28/1999 5:38:00 PM
From: tuck  Read Replies (1) | Respond to of 14162
 
Herm,

I've been detecting a strong streak of value in you these days. If the stock has yet to earn income, you don't seem to think it qualifies as a CC candidate. I remember the early days of the thread, when we were following Vivus. I believe we followed it before it was making any money, then it made some, then it lost share to Viagra, etc., and started to lose again. I gather that one turned south hard enough that few people here came out very far ahead, if at all. Did this experience cause a policy change in the WINS sytem -- only CC an income-producing stock?

I suppose that would be safer, but would limit your opportunities considerably. Which has the effect of making the screening process a litle simpler, too. I find that the income earning stocks are generally not so volatile, thus commanding noticeably lower premiums. I have to make coin for a couple of months before a large chunk of capital shows up and I can be more conservative. Thus, I find myself drawn to the story stocks such as EDFY.

One of my favorite exceptions is GCTI, a CTI company that is making money and is one of the few pure CTI plays left, making it an attractive takeover candidate, as large networkers seem to be very interested in these companies (LU and CSCO have both bought one recently). Unlike my other money making pick CHRZ, which is slowly getting off the floor, GCTI commands rich premies. What do you think of that one?

Cheers, Tuck



To: Herm who wrote (10572)5/19/1999 9:28:00 AM
From: Dan Duchardt  Read Replies (1) | Respond to of 14162
 
Herm,

In the words of the late, great Roy Orbison "I was alright, for a while", but your reading on HWP has stood the test of time. Nice call! :o))

Dan