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

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To: David Wright who wrote (10539)4/26/1999 12:09:00 AM
From: NateC  Read Replies (2) of 14162
 
With Dell, here is how the ROIs/month come out after the
May 50. Note that these are calculated using the template in McMillan, and
Ameritrade's commission and margin structure.

June 50 5.06%
Aug 50 5.18%
Nov 50 5.35%
Jan 50 5.55%

Given that the percentages per month are nearly the same, per your own comment,
it sure seems to me that you would be better off compounding every two months,
than every 4 or 6.

Looking at the 45 series

May 45 12.41%
Jun 45 10.02%
Aug 45 8.32%
Nov 45 8.36%
Jan 45 7.98%


David wrote the above.

I find it useful....and the compounding is important

another good thingto do.....but this has more to do with pricing the options you are going to trade than with anything else...is to check out the amount of under/overpricing..
I find the information useful at :
fast.quote.com

for this
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