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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?


To: Douglas Webb who wrote (7738)6/25/1998 12:45:00 PM
From: mc  Respond to of 14162
 
Good questions Doug...now I'm unsure if I was doing it right. <g>

#1 - I was using change based on the close.

#2 - divide by the number of up/down days - not the days in the total period

#3 - No change days are left out - don't include them in when you divide by the up/down days

That's how I was doing it. Seemed to be working fine. Maybe someone else can provide better insight. I had to assume a lot of things because I got my formula from a pretty ill-explained definition on a website somewhere.

Take care,
Gary