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

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To: Douglas Webb who wrote (6662)2/6/1998 3:22:00 PM
From: VincentTH  Read Replies (2) of 14162
 
Doug and Herm,
Do you have pointers to tools (spread sheet is fine) that help me
calculate the call option price based on the Black Scholes (sp) model?
What adjustment should I do to model the US option pricing (vs European)?

My primary use of it would be to help me set limit price for orders
before I set off for work everyday. Say, I think that a stock is to
go down $2 from $30 today, (based on my novice TA skills), and the
$30 call was at $2 the previous day close, what target price should I
use should the stock drop to $28?

Thanks In Advance
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