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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: cfoe who wrote (1677)7/30/2001 8:19:26 PM
From: Kayaker  Read Replies (3) of 5205
 
What is rate at which the time premium will deteriorate?

Note that the decay of time value is not linear. The closer you get to expiration, the greater the daily loss. $5.80 current vs $3.80 cost is a decent return. IMHO a common mistake with long (short term) calls is not exiting once you have a reasonable return. I would take da money and run.
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