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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: RCVJr who wrote (5297)10/7/1997 8:19:00 AM
From: Herm   of 14162
 
According to McMillian's Book, Options as Strategic Investment, striking price intervals on a particular underlying security are normally spaced at intervals 5 points apart for stocks selling up to $50 per share, 10 points for stocks between $50 and $200 per share, and $20 points thereafter. There may, however, be exceptions to this general guideline. So, the MMs and the bids dictate the opening of other strike prices. That's the best answer I came up with. Herm
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