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

To: rydad who wrote (3160)	12/19/2001 12:03:58 PM
From: Dominick	Read Replies (1) \| Respond to of 5205

I agree with Dr id. Why tie up that amount of money for such a small return, not to mention increasing your risk. For example: NTAP has an IV of 87%. which means it could be in the range of $47.49,(.8724+24) to 3.12 (.8724-24). So be careful, Dominick

To: rydad who wrote (3160)	12/20/2001 6:21:14 PM
From: Dan Duchardt	Respond to of 5205

rydad, Do you really have to tie up the $37,500 for all that time?? Most margin accounts will let you carry the position for a lot less than that, and then you can use the money in other ways until such time as you are required to purchase the stock. I'm not saying it is a better idea than selling a higher strike, but to make a valid comparison you need to have the right parameters. Once you know what the real cost is to carry the position, then you can compare it to the alternatives. Dan