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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: Jonathan Thomas who wrote (10579)4/29/1999 5:15:00 PM
From: Herm  Read Replies (1) | Respond to of 14162
 
ORCL Technically, ORCL is coming off an upper BB tag and
high RSI. According to the WINs approach, you should see a
bounce off that lower BB in a week or so. ORCL is cheap at current
levels. Although, like IFMX, this area of computer database sales is
most likely in competition with the Y2K expenditures. That is, the
industry is taking care of last minute business for the year 2000
problem and is not interested in new software to complicate things
more than they will be. ORCL sales may be soft for the remainer of
the year. So, sideways motion is most likely. It would be possible
to CC ORCL at these level in the meantime. CCing the LEAPs with
spreads would be my choice over the stock itself.

NASDAQ: (ORCL : $26 7/8) $39,968 million Market Cap at April 29,
1999 Ranks 296th in the Fortune 500 on Revenue & 139th on Profit.
Employs 30,000. Trades at a 27% Discount PE Multiple of 31.7 X,
vs. the 43.3 X average multiple at which the Software & Services
SubIndustry is priced.

ORACLE CORP.
(NASDAQ:ORCL Last Sale: 27 1/4 -1/16) ORCL Trading Summary 29-

APR-99 Ticks Money Flow($MM) Avg. Price
Small Blocks +487 -487 +7.9 -9.0 $27.2493
Large Blocks +12 -17 +15.7 -14.2 $27.3565
Total: +499 -504 +23.6 -23.2 $27.3016

28-APR-99 Ticks Money Flow($MM) Avg. Price
Small Blocks +477 -493 +8.0 -10.1 $27.6886
Large Blocks +13 -15 +7.4 -12.3 $27.7050
Total: +490 -508 +15.5 -22.4 $27.6950



To: Jonathan Thomas who wrote (10579)4/29/1999 9:14:00 PM
From: NateC  Read Replies (1) | Respond to of 14162
 
Jonathan....if it's pricing you want.....why notconsider buying LEAPS instead of the underlying stock.

Let's say you like DELL (I don't,right now)..just an example

DELL is at $41 and change....but you can CC it as much as you want...by buying the Jan 2001 LEAPS calls....the 35 S/P is about $19...and the 40 S/P is 17.50