SI
SI
discoversearch

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


To: Jerome who wrote (4395)4/12/2006 11:32:18 AM
From: TShirtPrinter  Read Replies (1) | Respond to of 5205
 
Greetings,

Simple answer IMHO is every day counts for time premium to errode. In cases like QCOM (one of many favorites around here) the queston is do you want that position exposed over a time period like you asked about. I'm trying hard to unwind an April 50 call sold for $1.80 before the week is up. Obviously sold to early <g>.

Tony



To: Jerome who wrote (4395)4/13/2006 3:54:56 PM
From: TimF  Respond to of 5205
 
Well every day that goes by is a chance for something to happen which could greatly effect the companies stock price. The stock price might only move on a trading day but news effecting the company could happen on a weekend or holiday.

Also options consider the time value of money and non-trading days aren't free for that purpose.

Tim