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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: Michael Hart who wrote (13486)	1/18/2001 9:30:16 AM
From: BDR	Respond to of 14162

Is this what you are looking for? Option Pricing Calculator schaeffersresearch.com "Using the fundamental components of the Black-Scholes model for options price determination, we have created a calculator that will enable any investor to calculate the implied volatility of an option based on its current price and discern a theoretical price based on its historical volatility."

To: Michael Hart who wrote (13486)	1/18/2001 2:03:01 PM
From: sergio	Respond to of 14162

True value for option is only a snapshot at that instant of time. As prices and expected volatility swings during the course of time or just during the day this true value also swings. What I am trying to say is, have a feel for the implied volatility of an option for at the money, in the money and out of the money within 1 strike distance. Once you have this feel, then trade accordingly, ie if its above what you expected then do the covered write. My rule of thumb is 10% premium I will receive for a month away (for at the money) then I do covered write anything less I would not do. serg

To: Michael Hart who wrote (13486)	1/18/2001 5:09:10 PM
From: Herm	Read Replies (2) \| Respond to of 14162

Hello Mike, In addition, to the other answers provided you can find a free calculator (Java Based) at the CBOE with full instructions on how to use it as a trader's tool. You could download their Options ToolBox for free and that will calculate the options price as well. They have two programs in the the download. One with a tutorial and the other is the pricer. CBOE FREE OPTIONS TOOLBOX AND CALCULATOR coveredcallswins.com CBOE ONLINE FREE OPTIONS CALCULATOR coveredcallswins.com OPTIONS WIZARD coveredcallswins.com Another possibility is the more detailed route of the Excel online and desktop version of the Option Wizard. This fellow has been around for quite some time. Nice product! The Option Wizard stock options pricer measures your probability of success, shows premium decay in tables and charts, puts the power of Microsoft Excel to work for you. Hope that helps!