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Strategies & Market Trends : The Covered Calls for Dummies Thread
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From: fmikehugo1/19/2007 2:14:19 PM
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Uncle Frank, Barring a miracle, my January 22.5s will expire.

As long as INTC drifts I'll just hibernate. If and when it starts to move up (my basis is 22.26), is there any way to calculate the trade off between the loss of time value and the gain from price appreciation of the underlying?

I don't have my McMillan handy but I seem to remember that time value starts dropping precipitously in the last week.

Of course I'm looking for a mechanical system that will tell me "You are now at the point where the effect of probable appreciation in the underlying is going to be more than offset by depreciation of time value."

That does not seem unreasonable. <G>
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