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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 (12010)12/5/1999 3:59:00 PM
From: mc  Read Replies (1) of 14162
 
Here's a question I should know the answer to, but, apparently I haven't paid enough attention:

About how far before expiration do you start to see decay of time value?

I'm long DIS at a nut of 23.5 and short the Jan-30 calls. I'm wondering if I'll get a chance soon to close the position.

It has shown a bit more strength than I anticipated. The one thing going for me right now is the fact that DIS has some serious overhead resistance at 30, but, the market is all hyped up over Toy Story 2 and if it does well through Christmas with lots of ticket and toy sales the market might push DIS up through 30.

One movie is a drop in the bucket for a company as large as DIS, but, the market seems to really be latching on to Toy Story 2 and Who Wants to be a Millionaire even though DIS said at last earnings conference that they expect flat earnings through next fiscal year.

Take care all,
mc
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