Quote:
Originally Posted by Gwaihir
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That's not bad, as long as you're selling the calls at a price you'd be happy to walk away from the security with.
Looking at the weekly, it looks like they're pricing the premium of a 10% upward move at 3 to 3.5% in premiums
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Btw, with the ln 2 being .683, a 3.25 weekly compounding growth interval requires
.0325/.683 weeks to double, so your doubling rate for premium:equity itself is just under 26 weeks, or 6 months.
That's not considering equity growth as well, if it doesn't progress more than 10% and force you to sell the shares on the call expiring in the money