Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Amit Raj who wrote (11425)	8/25/1999 9:07:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Lenght of time for the PUTs? A great deal depends on the float turnover (TRO). How many days does it take to turnover the entire float. Divide the average shares traded in say the last four weeks and divide into the number of shares in the float. That will give you the number of days it takes. Viper stocks will typically have 10 to 30 days TROs. While conservative stocks may have 120 to 140 days. So, if the stock moves fast from upper to lower BB, the charts will show you the range it could travel. Thus, the PUTs are only worth while for the downward length of time for that cycle. The longer the time for the PUTs, the more time value that will remain in the price. Thus, you would get a bigger payoff when cashed out. You are better off to have more time then less. :-)