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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: Dr. No who wrote (9175)	11/25/1998 10:54:00 AM
From: Douglas Webb	Respond to of 14162

I am not clear how to use doug's web site to predict the value of the call option. 1) Go to the options page, and enter the stock symbol. 2) Go down to the option you're interested in, and click on the implied volatility. You'll link to the option calculator, with automatic entries for the strike price, stock price range, and volatility. The two tables, one for calls and one for puts, show theoretical premiums for various 'months to expire' and stock prices. For example, if you're considering buying or selling an option now that expires in three months, and you're interested in what it will be worth one month from now, you would look at the row for two months. That will show you how much the option will be worth for various stock prices at that time. (You've still got to predict the stock price, though. Also, I can't estimate bid/ask spreads, which can be significantly different from the theoretical price.) Also how do you plot the option at askresearch? Just type in the option symbol, rather than the stock symbol. Doug.