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

To: Uncle Frank who wrote (1504)	7/16/2001 1:19:20 PM
From: FaultLine	Read Replies (1) \| Respond to of 5205

With only 4 days till expiry and the underlying at 41.25, I'd have expected the july45s to be selling at less than a buck. IMHO it's because you personally are short sgwgi... --dfl@holdyourcardsalittlecloserduf.com

To: Uncle Frank who wrote (1504)	7/16/2001 1:35:24 PM
From: William	Read Replies (2) \| Respond to of 5205

E*Trade has a screen that gives Black-Scholes value at $0.62 with the stock at $41.25. Value is $0.78 with stock at $41.93. William

To: Uncle Frank who wrote (1504)	7/16/2001 7:10:39 PM
From: alanrs	Respond to of 5205

Have you been watching how strong the option is during this dip? If I was going to buy it back, it would have been last week, and yes it does seem very (too) strong. Last week with SEBL selling for about $40, the 45 traded for $1.30. I don't know how many contracts, it may have been a fluke. Three days later with the stock the same it doesn't make a lot of sense that the option would be 15% higher. On top of that, the puts are moving higher by a greater percentage than the stock is moving lower (if that makes any sense). Some of the July/Aug puts around 35-40 had huge moves up today. Wish I was more comfortable with what that is trying to tell me. Seems like this is contradicting what the calls are doing. Also kind of frozen in my tracks after reading Dan and Mathemagician last night. ARGH! I HATE THAT FEELING. Must go to quitting smoking reinforcement class. I'll worry about it later. There's always the old adage that you can't go broke taking profits! ARS