SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Ask Michael Burke
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: wlheatmoon who wrote (46594)2/11/1999 2:00:00 PM
From: Don Lloyd  Read Replies (1) of 132070
 
(got an option and premium question. want to sell JNJ covered calls. Can get April 85 for 3 5/8. July 85 for 6 1/8. Which one and why? Anyone?)

It all depends on whether you want to have the stock called away (and produce a taxable event) and what you expect the stock to do. I would look at the March 85's and at all the 80's. If you go out beyond 4-6 weeks the average rate of time value decay is low and you don't get the multiple chances to re-write which really boost the rate of return. If you don't expect the stock to hang high for re-writes, then you should be writing in the money, if not selling. JMO.

Good Luck, Don
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News