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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: Ira Player who wrote (145)	4/7/2007 8:02:56 AM
From: Jerome	Read Replies (2) \| Respond to of 5891

Thanks IRA...I used the six week period because in the past I noticed that an option that was worth 1.10/1.20 at the six week period was only worth .95/1.05 at the four week period. I have no doubt that what you are saying is correct. I just never did the exact math on the matter. Is implied volatility the same as the stock's beta? Later today I will post the Sivy 70. This is a group of large cap stocks with good growth and earnings potential for the next year. They should also good covered call prospects. To my way of thinking the major concern of covered call writing, is the collapse of the stock after the call is written. AMD and MOT are two stocks that have caused me some distress in the past few months. Ira...thanks for your analysis, all thread viewers will benefit, from your exact mathematical models. I can see where my guesstimates come up short.

To: Ira Player who wrote (145)	4/7/2007 8:21:45 PM
From: Bridge Player	Respond to of 5891

Ira, what is your opinion of selling next month calls on stocks on the Thursday or Friday of expiration week? I am referring to those stock that are out of the money by anywhere from .40 to 1.00 or more and where the odds of being out of the money at close Friday appear to be upwards of 80+%. Do you do this sometimes and take your chances on the stock blipping up and going in the money? If so what are your experiences? I have observed that the premiums on next-month options seem to dip on Monday at the opening as many call-sellers appear to be following the covered-call-write path. On many occasions I have written new options late in expiration week with favorable results and so far at least have not been caught.