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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: Roy Travis who wrote (10883)	5/23/1999 12:59:00 AM
From: BDR	Read Replies (1) \| Respond to of 14162

Off topic, sort of- I, too, have followed SEPR and think its long term prospects are excellent. I can't explain the recent sell off and don't know where the bottom is but I think we are near it. But then I said that to myself repeatedly on the way down. Before the slide started I was holding some shares that I bought at 22 1/2 two years ago. My big, bold capital preservation move was to sell March 140 CCs for 4 1/2. Hah! A drop in the bucket compared to the other 65 points lost on the downslope. Talk about feeling like a "deer in the headlights". I bought more on the slide at 118, 95, and sold OTM puts that then went deep ITM before they were either exercised or I bought them back. I now have a net loss on paper. Despite that and because of how I feel about the company's future, Friday I put in limit orders to buy the Jan01 65 and 70 LEAPs but missed the morning drop and they weren't executed. I am planning on putting to work what I have learned here on this thread and from McMillan writing CCs against the stock I own and against the LEAPs if I can get some. It may be tricky because of the volatility but it makes for nice premiums. I expect the stock will recover in the next year or two. The company's prospects are still good. There have been drops of slightly lesser magnitude, though at lower prices, in the past. I wouldn't write any more puts myself. I own enough as it is and don't want to get backed into buying more again. I don't have a good suggestion for resolving your problem but I just thought I would let you know you are not alone in trying to find a way out of the SEPR collapse. One thought that is in the back of my mind in planning a strategy- if the price drops much lower SEPR will become irresistable and some Big Pharma is sure to come courting but perhaps not at a price that will make us whole. Another reason to try to pick up some call premiums while this story runs its course.