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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 (10689)	5/10/1999 12:11:00 PM
From: tuck	Read Replies (1) \| Respond to of 14162

Ryan (?), You using an alias? Whatever. That looks like a good position. Daytraders have clearly gotten a hold of Edify. The only news I've seen is from mid-session Friday, but the thing has done 3 million shares, and has flirted with 16!! I'm hoping to roll to the June 12.5s now, on the theory that this is the most overvalued option I can get with messing up my downside protection. I want to get this done soon, because you know this puppy's going to sell off at the end of the day. I can thus ride with daytraders, and maybe buy 'em back cheap later on. If not, the return if exercised is pretty nice. Impossible to run the numbers right now. Looks like you have a good position that will reauire a lot less sweat than mine. But it's a good sweat. Gotta go. Cheers, Tuck

To: Jonathan Thomas who wrote (10689)	5/10/1999 12:16:00 PM
From: David Wright	Read Replies (2) \| Respond to of 14162

Ryan, If you had done the June 25 at 1 5/8, instead of the August 25 at 2 3/4 your ROI per month on the position (using margin) would have been a full 10% higher. However, if you can use the higher premiums from the August call to do the sideshows, then you likely make up the difference, or beat it. To me, using one combination to make a strong return, which I then re-invest in another strong position, is a lot less speculative than trying to play the option sideshows.

To: Jonathan Thomas who wrote (10689)	5/11/1999 11:02:00 AM
From: Jonathan Thomas	Read Replies (2) \| Respond to of 14162

<<<<<< 700 shares NOVL @ 23 (Purchased on 5/7/99) Sold Aug 25 Calls @ 2.75 (5/10/99) Order to buy 7 June 20 puts @ 3/8 (5/10/99) >>>>>> As a follow up. I didn't get those puts yesterday, but I put the order in again today. and got hit on the quick runup this morning. So current positions is: 700 shares NOVL @ 23 (Purchased on 5/7/99) Sold Aug 25 Calls @ 2 3/4 (5/10/99) Bought 7 June 20 puts @ 3/8 (5/11/99) Current Nut 20 5/8 Current Price: 24 5/8 Ryan