How To Write Covered Calls - An Ongoing Real Case Study!

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To: Ira Player who wrote (14139)	1/27/2004 7:21:38 AM
From: Herm	of 14162

Good point IRA! HLYW is adjusting to market conditions. NetFLix is a crazy setup and the stock price is way overpriced. HLYW technical chart is reading a bottom for the near term and some kind of bounce is to be expected. I'm only doing the APR04 12.5s options at this point. I owned the stock way back when it was $2.75 and went to $12.00 in one year. That was one heck of a hit. By the way, I have not seen any announcement or promo on "$20 have any 2 movies for 30-days" with HLYW in my area. I've seen $.99 cents for three movies for five days at their new store openings only. HLYW just opened another store in my area and received the offer via mail. I transferred my account from a store in my old neighborhood. There is a $3.99 5-day rental normally in place for both VHS movies and CDs. What attracted me to HLYW as a customer was the vast amount of CD movies over Blockbusters.

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To: Greg Peckton who wrote (14144)	1/30/2004 8:52:23 AM
From: Bridge Player	of 14162

Assuming: that you own 100 shares of each stock for which you want to sell 1 call, that the stock has options trading on it, that it is the same account as the one in which you trade options, that you have signed margin and option agreements, then I think you need to take a firmer stand with your broker, and ask him to show you the company policy, or perhaps to speak with his manager, so as to better understand the policy. If you are sure you are on solid ground and make it clear to him you know what you are talking about, IMO your broker will quickly back down. If not, change brokers.

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To: Ira Player who wrote (14149)	2/24/2004 6:58:06 PM
From: Bridge Player	of 14162

<<Todays drop may be the start of a fall...why play with those darn mailing envelopes if you can just go to the shopping center and get the movies you want NOW from Hollywood!>> Hi Ira, I am at a loss to understand your reasoning. As a Netflix subscriber, and speaking strictly for myself, why on earth would I want to have to go out in my car to a shopping center to get a DVD when I can have it delivered right to my door? Especially when I can choose from 15,000 titles. With postage paid both ways. And if I'm not going out for any other errands, my friendly postman (yes, I do know they are not obligated to do so) will pick up my return from my mailbox. Two days later (I live in an area with 1-day delivery after shipment) I have my new movie. Since joining my wife and I probably average 3 or 4 DVDs a week, and have enjoyed the service hugely. There is an excellent chance I will never set foot in a video store again. IMO the far greater risk to Netflix and Hollywood both is expansion of movies on demand via cable. And even then there is no competition on rates. At 12 or 15 movies a month they are less than 2 bucks each. My current rental queue contains about 25 titles and I am one happy dude.

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