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 : The Covered Calls for Dummies Thread

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Uncle Frank who wrote (2275)8/29/2001 2:01:20 AM
From: Dan Duchardt  Read Replies (1) of 5205
 
Bummer! I was just getting ready to take the credit when I saw this <ggg>

I did write a fairly analytical piece arguing the advantages of farther out writes, but I can hardly claim to be the only one who ever thought of it. I am a believer though. I do a near month buy write now and then, but with stocks bouncing around as much as they are I want bigger premiums. I've read a few articles lately that are questioning the wisdom of writing CCs at all because the premiums are too small. Farther out gets you the bigger premium, and often there is opportunity to book a nice profit in a week or two so the time erosion factor (theta) is not that big a deal.

Dan
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext