some thoughts on selling puts
if SP = strike
P = today's price
Figure of Merit
1a.
~ safety margin
~ yield
~ 1/duration
~[(sp-p)/p][premium/P][1/duration]
where are we on 1-yr high /low?
BP = buy price
???
BP = L + 0.25*(H-L)
Monday, March 19, 2007
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