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 (10860)	5/20/1999 1:07:00 PM
From: Rick C.	Read Replies (1) \| Respond to of 14162

Hi Herm ~ Care to revisit a good memory? >>> 05/20 11:18 Featured Articles From S&P Personal Wealth <<< "S&P Reiterates Buy on Ross Stores Shares" personalwealth.com Standard & Poor's reiterated its 5 STARS (buy) recommendation on shares of Ross Stores (Nasdaq:ROST). Analyst Matthew Hershberg says fiscal first quarter earnings per share of $0.73 versus $0.57, on a 14% sales rise, were close to expectations. He notes that comparable store sales grew a better than expected 7% and solid strength was seen across all regions and merchandise categories. He feels the stock is still undervalued versus its peers based on free cash flow and earnings multiples. Word on the Street brings you comments every trading day from Wall Street's top equity analysts on stocks or industries that are moving significantly. Regards, Rick

To: Herm who wrote (10860)	5/21/1999 4:10:00 PM
From: Amit Raj	Read Replies (3) \| Respond to of 14162

I bought June45 calls for Dell at $3 a couple of days before the earning with the hope of higher price after the good earning report. After the earning was out the stock has started moving south and the June45 calls are currently at 3/8 or 1/2. Although I have lost a lot, is there any strategy left which I can use to minimize my losses. Any suggestion from Herm, Dave or any body else will be highly appreciated. Amit

To: Herm who wrote (10860)	5/21/1999 5:01:00 PM
From: Jon Tara	Read Replies (1) \| Respond to of 14162

Herm, I went ahead and started a pretty agressive (for me) HWP put position today - June 95's. I risked my recent profits from SUNW and DELL calls. Technically, I am still concerned, though, that HWP could be forming a flag here, and could make another big run up within a few days. I do note that HWP doesn't seem to hold peaky highs very well (see 5/12/98 and 1/29/99). On the other hand, it's held this one better than in the past. But the stochastic probably crossed below the signal today (I haven't downloaded my end-of-day data yet), the price is WAY above the 50 and 200 day moving averages (and has never been able to keep this kind of break away from the averages in the past), and it hit the top of the best regression channel I could draw - on 5/18, it also touched the top on 2/1. You can see what it did after each of these dates. Normally, I think of short or put plays in stocks that are doing poorly. But how many times have I wished that I'd gone short (or bought puts) on a stock that I was long? I'm sure we've all thought that. When you are long a stock for a while, you get to know how it trades, and you know when it's gone to far and is prone to correction. So, I was intrigued to see you - long HWP - taking an interest in playing the short side. so, I'm going with your gut feeling and what the bulk of my technical analysis points to. On my very short-term MACD of RSI indicator, it looks like HWP could get a boost on Monday or Tuesday. Since HWP didn't get "pegged" by options, I doubt there will be much Monday-after-expirations effect on HWP, though, and any buying Monday should be mostly "natural" buying. I am looking for a quick move to 90 for a profit of perhaps 50%. Because I am using June puts, it has to be fast or premium erosion will eat away at my position. I will re-assess (mostly market) if I get a move to 90 to decide whether to stay in for a possible move to 85, or perhaps roll forward. If I think it's iffy at that point or might take more time than I'd thought, I'd prefer to be further out and more in-the-money. I am looking to be out of this next week on this position, though. I missed out on a wild hunch yesterday. I was going to buy expiring SUNW May 62 1/2 puts for 1/2. I don't know if you follow the "max pain" theory of option expiration, but the "max pain" point for SUNW was 60. I figured it would be drawn to SOME strike price in any case, and figured that 62.5 was unlikely, since that's a leftover pre-split strike, and these oddball strikes tend to get little interest. (Heck, I even had trouble trying to enter an order, because my broker uses an oddball non-standard notation - like, say SUQMAY65P. How was I to know that the proper way to enter the 62.5 was SUQMAY62P, leaving off the 1/2? :) ) In a great stroke of "woulda coulda", of course, SUNW closed today just a tad above 60, and the May 62 1/2 puts closed at a bid of 2 1/4... Sorry, none of this has anything to do with CCing. :) I'm still watching and waiting for BYND. I'm wating for either a definative turn or lower-still prices before initiating a long position, from which I will attempt CCs on what I hope I will recognize as peaks.

To: Herm who wrote (10860)	5/31/1999 8:58:00 PM
From: Herm	Read Replies (3) \| Respond to of 14162

FREEBIES - Come and Get Em! Our friend Eric has been a very busy man building up his web site service. Very impressive layout with soup to nuts as far as plays. Eric emails out once a week a short gratis newsletter that you should check out for sure. He puts in a great deal of effort to come up with some darlin plays. Thanks Eric for the freebies. How about a discount for our forum members????? :-) A COVERED CALL PLAY - courtesy of coveredcall.com. At our CoveredCall.Com website we post covered call tables with expiration of the option generally between 4-8 weeks. In our weekend member's email we take a look at longer plays that many investors find interesting. Take a look at AboveNet Communciations (ABOV) which is currently trading at $33 5/16. The Aug 35 calls (UBVHG) are trading at $8. That's a return of 31% if not called and the stock stays at its current price and 38% if called. (* See return calculations at end of newsletter.) LEAP Covered Call (spread) - courtesy of coveredcall.com Our Leap play is a also a covered call play. Take a look at AOL (AOL) which is currently trading at $119 1/2. The Jan '01 120 calls (ZKSAD) are trading at $46 3/4. That's a return of 64% if not called and the stock stays at its current price and 64% if called. However, that's a long time away until expiration. GMRK - INSIDER TRADING LEAD invest.foxmarketwire.com iqc.com Free Level-II Quotes? tradescape.com See After-Hours Quotes? abwatley.com internetinvesting.com Note - I have no financial interest or ties with any of the web sites mentioned above. I'm only interested in the same thing we all seek. That is, good information, worth while books, and possible web services for covered call writing.