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.

Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Joseph G. who wrote (12103)	12/1/1998 12:44:00 PM
From: yard_man	Read Replies (3) \| Respond to of 86076

No, when I said premium JG -- I meant time premium. Time premium shrinks as calls or puts go in the money, right? I did a buy/write on NEM -- bought 100 at 20 3/4 sold the Jan 01 20 call for 8 5/8. If (a big if I know) NEM goes to 30 or so the call option I wrote will have some time premium but much less than ~8 -- probablly something around 2 - 2 1/2 points. That's when I'd buy the call back and sell the stock.