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

To: Alastair McIntosh who wrote (11858)	11/20/1999 2:19:00 AM
From: Dan Duchardt	Read Replies (1) \| Respond to of 14162

Alastair, I have used the CC calculator from time to time, and I agree with you about the ROI calculation. I recall we had some discussion about how one correctly calculates ROI for CCs on this thread a few months back. I posted an excel function that can give you a precise ROI, even for multiple writes over time on a stock you carry Message 10879631 For relatively small premiums (< 5%), the difference in calculated ROIs is not so great as to be of concern, but as your example points out when you get into the >20% range, it becomes significant. I just keep in mind that the calculator is giving the conservative result, and the ROI is typically better than what it says. If I need more precision, I do my own calculation. Dan