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, 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.

4. Sprint trades around the $15.50 range and really tightens up
around October 2003 thru January 2004. This again, is a long
period of decreasing volatility.

Conclusion: Sprint shows two favorable patterns here that are
friendly to covered call writing. The first is that Sprint shows
the tendency to trade in a tight range for extended periods of
time, as seen in Feb. May 2003 and Jul. Dec. 2003. This is
advantageous for premium collection.

The second is that when Sprint does move, it mostly trades up in
a slow, directional type of move, as opposed to gapping (with
the exception of Jan. 2003). These slow upward directional moves
work well for covered call writers in two ways; capital
appreciation and premium capturing.