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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: Andrew N. Cothran who wrote (517)	5/10/2001 4:36:37 PM
From: Uncle Frank	Respond to of 5205

Nice work, Andrew, but they are better examples of trading than the cc writer's core strategy of allowing time premium to waste. >> I think I will stick to the nearest or the nearer term options. Time premiums expire more rapidly and one has a better feel for the relationship between stock price and option price. Me, too. I prefer writing close in for the very reasons you've delineated. duf

To: Andrew N. Cothran who wrote (517)	5/10/2001 8:13:53 PM
From: cfoe	Read Replies (1) \| Respond to of 5205

Moral. Better profits are in the short life options, not the longer lifes. This has been one of the questions I have been pondering the most as I have begun to sell CCs. When I would look at the premiums for further out options, they usually carry seductively high premiums. However, what I began to notice is that when the stock falls, the further-out option prices fall more slowly than the near-in ones. I had begun to conclude what you stated so well in your very clear example.