Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 48.32

-0.8%

3:59 PM EST

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To: GVTucker who wrote (178870)	7/25/2004 9:37:58 AM
From: Amy J	Read Replies (2) of 186894

OT GV, okay, fair enough. But if you do get called early, worse case you get to keep the time premium, right? Consider writing deep ITM covered calls, expiring 2+ years out. Say MSFT Jan 22.5 2007 (currently at $8). The time premium is 22.5+8-28 = $2.5. If you don't get called, you get $3 dividend. How is it not better than regular covered calls? Or, is the $3 drop in stock price after the dividend is paid out is accounted for in the premium of the option price? Regards, Amy J

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