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Non-Tech : The Critical Investing Workshop

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To: Clappy who wrote (8158)	3/19/2000 8:28:00 PM
From: Jim Willie CB	Read Replies (1) of 35685

on option call prices, writing, expiration, interest rates first a misconception: my reference to interest rates being a component to option pricing was to prevailing cost of money as in 30yr TBond... too many drugs years back (your and me)... unsure exactly, but figure the floating of options requires some sort of carrying cost with borrowed money to cover premium... enough I would guess that if you wanted to write a July call, as March expiration was imminent, that the price of the July call would not have taken its extra hit until after the March actually expired... so yes, sell the distant before the nearby contract expires... also, generally time premium is ripped out over each weekend, so Fridays are good for selling calls establish your own systematic pattern for selling optimally... each has his/her own style... personally, I prefer to "attempt" to sell calls when my underlying stock is toward the upper end of its current trading range... this has been an exercise in frustration (easier to find a virgin in Florida) for QCOM since its open window over $140 per share has lasted under 24 hours each time... I just dont sit by the PC all day... a man must work on his tan, you know / Jim

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