|A Lot Of Time Premium|
Ever wonder how much total time premium is in the market at any given time?
It turns out that right now there are 130,513,596 open call option contracts. The sum of all the time premium in those 130 million contracts is $18,757,615,007.42. That's $18 billion of wasting assets that someone is going to collect (*)!
What does $18B look like?
We couldn't find a photo of $18 billion in cash (and, sadly, are a wee bit shy of the $18B needed to take our own photo), but we did find a photo of one billion in cash. You'll just have to imagine 18 times as much as the pile of $100 bills pictured here.
And if you want to see a LOT of cash (like 1000 times as much), check out theTrillion Dollars article from January.
(*) Since 60% of contracts are closed prior to expiration, only 40% of $18B, or roughly $7B is going to time decay to zero between now and expiration. Of course, some contracts will partially decay before being closed, and new contracts will be opened between today and expiration, so it is likely more than $7B of premium will be collected. In any case, it's a big number and you should get your piece by selling some premium!
|Five Ways To Increase Portfolio Income|
There are many ways to use covered calls to increase your portfolio's income. Here are five of them:
|Free Covered Call Books Giveaway|
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Saturday, November 17, 2012
Born To Sell Article About Time Premium
Here is an article sent to Sell The Call by Born To Sell. It was back in September.