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Strategies & Market Trends : The Market Taught Me That......

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To: ratan lal who wrote (28)11/6/1997 2:59:00 PM
From: benmoti   of 151
 
Ratan

As to how many WRITE CC's one can write is not the object unless profitable. As you know premium of every WRITE CC has time and price dependecy that could be studied. That is to differentiate time value as well as price value of any premium. Time value
changes as time elapses and price value fluctuates with the price of underlying stock. That's what I am trying to do now.

I guess with this approach, it is easier to select WRITE CC's
that meet the criterion of minimum loss and maximum gain. And
to calculate P/L for an optimal naked put writing I am not sure
yet.

As to access to Etrade yes I do and they have Scholes & co
the Nobel prize winner on their analysis menu. Scholes & co
belong to the camp of other 90% statisticians who believe in
parametric statistics and I am no longer in their camp.

Thanks again Ratan for your help and still open to suggestions.

Behrouz.
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