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Jim,
Smart move on IOM. It hit the top of my channel yesterday (5/8) at 19
3/4. The support line is a little skewed. I draw it between the
3/25 and 4/25 lows, but it is not parallel to the resistance line.
But it *is* parallel to the 26-day MA, so it is probably correct.
So I expect IOM at 17 in two weeks. Unfortunately, I can't write
covered calls, since my position is in the convertible bond, not
stock. So I'm just going to ride this one out.
I guess I could buy puts, but the premiums for IOM options are usually
way out of line. I haven't even looked at them lately.
On Fri, 9 May 97 15:51:59 UT, you wrote:
>All,
> The market opened strong this morning then started backing off. IOM hit
>the top of my Short Term Up Trend Channel yesterday and then pulled back by
>the close. It tried to rise to the channel top again this morning but failed
>and is now back to even. This is a classic sell signal for channel traders,
>but I like IOM to much to close it here. Instead I decided to take out some
>protection with covered calls. I sold enough June 17 1/2 calls at 2 5/16 to
>fully cover my open position.
>Jim
>
>
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