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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: Jerry Olson who wrote (10970)	6/6/1999 3:53:00 PM
From: RayV	Read Replies (2) \| Respond to of 14162

Jerry, are you finding Point&Figure charts online? Software? Or are you doing it by hand? I've just become interested. Thanks. Ray

To: Jerry Olson who wrote (10970)	6/6/1999 5:31:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Howdy Gerry my old and wise friend! PCLN is relatively new and does not trade options. So Gerry, I would be somewhat nervous about holding onto this stock. iqc.com CMGI seems to be taking a rest after making a new high. The chart shows a bottom price support around $70. So, worse case scenario from the current $94-$70 bottom=$24 drop. CCing the CMGI 100s DEC. @ 25 3/4 at this point would be cheap insurance and you would not mind being called out at 100 is not too bad. Your CC B.E. is at $100 CC strike + $25 premie =$125 before you start to loss capital appreciation. I don't think that will happen before December. Another possibility would be to cash out and buy the LEAPs and CCing those! You would get a much better ROI and have less money exposed. NASDAQ: (CMGI : $94 1/4) $9,413 million Market Cap at June 4, 1999 Trades at a 8% Premium PE Multiple of 428.4 X, vs. the 397.1 X average multiple at which the Internet Products & Services SubIndustry is priced. CS The chart reads a bottom price support at around $11.00. So, CCing the 15s July @ 1 3/8s would give you $1 3/8s points downside protection and a 3 3/8s upside potential before your CC fall behind the capital appreciation. You CC B.E. is at $15+$1 3/8=$16 3/8s. We had some discussions on CS back in March 1999. Nate and a few others liked the stock. Check it out! 127.0.0.1:3456/SI/~wsapi/investor/search?s=CS&domain=subject12574