SI
SI
discoversearch

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 : Gorilla and King Portfolio Candidates
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dr. Id who wrote (43989)6/29/2001 5:42:37 PM
From: Mike Buckley  Read Replies (1) of 54805
 
Dr Id,

But Mike, aren't you converting deep in the money calls to slightly out of the money calls? Unless I'm missing something, that would account for the difference in premiums, even given the greater time premium of the new LEAPS.

Yes, but ...

The time premium of the ITM calls when the stock was at about the same price that it's at now was $8 two months ago. That's about $1 per month. The LEAPS I just bought are about 5% out of the money, yet the time premium is only about about $.80 per month, 20% less. I realize that the farther into the future the expiration occurs, the cost of the time premium on a monthly basis is less (which is at the core of my strategy), but is it usually that big a difference?

--Mike Buckley
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News