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Strategies & Market Trends : cash flow investing for retirement

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To: GROUND ZERO™ who wrote (81)	12/10/2011 4:26:53 PM
From: tyc:>	Read Replies (2) of 94

To use the calculator, one usually enters the stocK price, the option price and the number of days to expiry. The calculator tells you what volatility % is implied (and the theta, delta etc). In practice, I seldom am interested in any greek or volatility%, being more interested in the "yield if exercised". the present value of the position and the proceeds of exercise. It is that yield annualised ..... higher as expiry approaches........... which persuades me not to buy back the short call.... ..... to allow the call to either expire worthless or be "assigned". (If anything is not clear I'd be happy to provide an example )

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