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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!
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To: stockycd who wrote (10780)5/13/1999 11:22:00 PM
From: Jon Tara  Read Replies (1) of 14162
 
The odds of you being assigned obviously increase when you write calls that are further out.

But I don't think you want to do that, anyway. Look at the decay curves. Or just look at prices. Look at the prices of options 1, 2, and 3 months out. What do you see?

You rake in much more premium writing 3 successive 1-month calls than writing one 3-month call.

Herm, am I wrong, or do I recall reading that you favor writing calls 2-3 months out? Reason?

Anyway, I certainly wouldn't go out FURTHER than 3 months.
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