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Guy,
I have Quantum bouncing down a little off the top of a Horizontal
Channel (HC) Friday. The odds favor a pullback to the bottom of the
channel. Offsetting those odds somewhat are the fact that the S/C and ROC
are both positive and rising. The ADXR is just below 21 and rising
slightly. That means there is a possibility that a new up trend is close
to starting which would mean it would break through the top of the HC. If
I had a position in QNTM (which I don't) I'd sell August 20 or 25 covered
calls against the position. If the stock did drop back to the bottom of
the channel, I'd cover the calls at a profit or just let them expire
worthless. If it broke out of the channel on good volume, I'd buy back the
calls at a slight loss that would be offset by the gain in the stock. If
it broke out on poor volume, I'd just let the stock be called and pocket
the option premium.
Jim
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From: Guy Gordon <gordon@xxxxxxxxxxx>
To: metastock-list@xxxxxxxxxxxxx
Subject: Re: Quantum
Date: Friday, July 11, 1997 3:23 PM
On Fri, 11 Jul 1997 07:00:12 -0400 (EDT), you wrote:
>A small note here. Quantum is the only drive maker which makes the new
>Ultra-ATA-2 type drives. As far as I know, no other driver maker makes
them
>yet.
That's nice for us QNTM shareholders. But I don't expect the monopoly
to last long.
None-the-less, QNTM looks better than SEG. So does WDC, but I chose
QNTM to trade.
My last trade was in at 19, out at 24. Then back in at 19 again.
Now my question is: do I get back out, now that QNTM is back to 24, or
do I stick it out for another couple of points? I think we'll surpass
the previous high of 25.
QNTM seems to be in a shallow uptrend channel. I draw the support
line thru the lows of 3/19 and 5/22. But I don't know exactly where
the resistance is. Anyone?
You can draw a line thru the highs of 2/25, 4/9, and 5/6, but this
line is not parallel to the support line and the 50-day MA.
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