A.I.M. Users Bulletin Board

[SFSecurity]

Hi Toofuzzy, I remembered wrong about the CALL option. I now recall that one can exercise the option at any time up to expiration. I've not done any buying of CALLs, just selling PUTs and then selling covered CALLs once the PUT has been exercised. So now what you are saying makes more sense.

But, back to volatility. I'm not sure why one should wait for more volatility. EWZ could sell a out of the money CALL at a strike price of $35 for $1.55/share. If on exercises it at the total cost of $33.95 then one would get $2.60/share for a 67 day option, assuming that it did get exercised. $2,600 over 90 days ain't to be sneezed at, especially if there was a dividend collected while holding it.