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.

Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: Dr. David Gleitman who wrote (8127)	3/19/2000 1:14:00 AM
From: Jeffry K. Smith	Respond to of 35685

Morning David. Thanks for spelling my name right! IF you are able to maintain the same premium, then yes, it is better to sell every month. IMO, one that does not carry the depth of experience of others here, you may have trouble maintaining that premium for that period of time. I say this simply because if you do nothing more than sell the same strike each month, I would expect the premium to go down. Why? Because a high premium to me indicates a high expectation of movement - if there is not much over a number of months, I would expect the premium to decrease. Furthermore, rolling out (if you have not bought back and re-sold in between - something that I don't yet have good enough timing feel to do) tends to lower your ROR (rate of return) because unless it is done right at expiry, there is still time value you must re-purchase in the near term options - you are not re-buying only intrinsic value and reselling t & i. It is a lot of work each month selecting stock(s) to get into, and I hope Voltaire weighs in on the matter. I do the same sort of thing he does, but I'm sure my experience pales next to his. As far as stocks closing right below their highest open interest, or at least like xxx 15/16, I have noticed the same thing. It is not always the case, but I have noticed it enough with enough stocks. That vacation idea sounds real good to me! Good "talking" to you. Best, Jeff Smith