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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Herm who wrote (6187)12/19/1997 2:01:00 AM
From: B4TheBell  Read Replies (1) of 14162
 
Herm,

Concerning expiration and theta values:

I'm thinking of writing January calls on the day December calls expire, 12/19. Theta value is shown as -0.06. Assuming stock price doesn't move, can I expect the premium to drop by about an eighth of a point by the following Monday? Will the theta change significantly when January becomes the front month?

Thanks in advance...

B4
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