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  • Answer Upon - FON Daily Chart - Covered Call Example #4

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    Sprint trades up to the top of its
    trading range in a slow, methodical way, indic
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    NOTES ON SPRINT (FON)
    Covered Call

    1. After a large drop at the end of Jan 2003, Sprint
    consolidates around $12.00 and trades in a relatively tight
    range, around $12.00, for approximately 5 months or until
    mid-May 2003. This period is the first opportunity for premium
    collection.

    2. At the end of May 2003, Sprint trades up to the top of its
    trading range in a slow, methodical way, indica
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    2003, Sprint
    consolidates around $12.00 and trades in a relatively tight
    range, around $12.00, for approximately 5 months or until
    mid-May 2003. This period is the first opportunity for premium
    collection.

    2. At the end of May 2003, Sprint trades up to the top of its
    trading range in a slow, methodical way, indic
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    e, around $12.00, for approximately 5 months or until
    mid-May 2003. This period is the first opportunity for premium
    collection.

    2. At the end of May 2003, Sprint trades up to the top of its
    trading range in a slow, methodical way, indic
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    the first opportunity for premium
    collection.

    2. At the end of May 2003, Sprint trades up to the top of its
    trading range in a slow, methodical way, indic
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    Sprint trades up to the top of its
    trading range in a slow, methodical way, indicating a period of
    decreasing volatility

    3. Sprint breaks out of old trading range by trading through
    resistance set by the 2 highs in February, around $13.25. It
    develops a new trading range at the $15.00 level by trading up
    in a slow, step like pattern which also indicates a period of
    decreasing volatility.

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