How To Write Covered Calls - An Ongoing Real Case Study! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Herm who wrote (12140)	1/4/2000 11:47:00 AM
From: john lilly	Read Replies (1) of 14162

A question for the gurus: McMillan, when comparing puts and calls, says that 1) "the call will generally sell for more than the put when the stock is at the strike" and 2) "an in-the-money put loses time value premium more quickly than an in-the-money call does." He says this has to do with carrying costs. I read his section on carrying costs, but I did not really grasp how carrying costs results in these axioms about calls vs. puts. Can someone perhaps explain why the price curves for calls and puts tend to follow these rules? Thanks in advance. -John

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next