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Former Short Position - BKEInitial Cover-Stop was established off the hilltop resistance points which were above the 30wk moving average (Risk Corridor = 11.8%). The next valley-bottom occurred at 10/11/02 as confirmed upon the third subsequent increase in closing price on 11/1/02. The next hilltop occurred on 11/29/02 as confirmed upon third subsequent decrease in closing price on 12/27/02. Since the 11/29 hilltop was below the 30wk moving average, we adjusted the Cover-Stop to the 30wk level at $21. From that point forward, Cover-Stops are adjusted downward in $1 increments in tandem with the 30wk. 4/20/03: True, we are dancing dangerously close to the flame setting the Cover-Stop only pennies above the closing price. However, as the 30wk flattens-out on this position, any extra space we permit is potentially lost profit. 5/11/03: First Cover-Stop violation. 21.9% ROI. Half of our position is still alive. 6/1/03: Second Cover-Stop violation. 22.9% ROI on this transaction, 22.2% ROI overall with 25% of our original position still alive. 6/8/03: Third and final Cover-Stop violation. 11.8% ROI on this transaction, 19.4% ROI overall.
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