Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (22052)	7/25/2011 8:00:01 PM
From: Roads End	Read Replies (1) \| Respond to of 220476

Example... If you sold AGQ August 200 strike at today's close at roughly $28 with the stock trading at roughly $220 there is an $8 premium in the call or 3.6% based on today's close.

To: GROUND ZERO™ who wrote (22052)	7/25/2011 8:03:10 PM
From: Paxb2u	Read Replies (3) \| Respond to of 220476

The options in a mkt that is declining will not rx as much a premium as one that is going up. On top of that your equity value will be going down. True u may continue to achieve 8%, but the cash value will be less and less.Example: 8% of $100 is less than 8% of $1000