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.
Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?


To: upanddown who wrote (18488)4/8/1998 5:20:00 PM
From: drsvelte  Read Replies (1) | Respond to of 95453
 
John:

A useful CC tool (Excel spreadsheet) can be downloaded here:

cboe.com

Just plug in the numbers and it will calculate rates of return.

Since the spreads are often pretty significant, I have had some success in splitting the bid/ask or going a teenie below the current ask. I hardly ever sell at the bid.

PS Another great options site:

webbindustries.com



To: upanddown who wrote (18488)4/8/1998 5:32:00 PM
From: SJS  Read Replies (2) | Respond to of 95453
 
John..

25 (strike price) - 22.75(current cost) = 2.25(stock appreciation)

2.25(stock appreciation) + 1.125 (call value) =3.375 (total return)

3.375 (total return) / 22.75 (investment cost) = 14.83% return if called

So.......14.83% if called at 25.

May options expiration are 5 weeks and 2 days away (pretty easy to
figure that one, huh? <g>)

Downside protection is down to 21 5/8.