Gold is currently (11:16 am) trading at $126.71.
The call's strike price is $123.
$126.71 - $123.00 = $3.71
current bid for call option = $3.75
current ask for call option = $3.85
Prices of options are made up of two parts:
1) INTRINSIC VALUE = difference between current price of stock and strike price
2) TIME VALUE = how much time do we have left until expiration?
That's the reason this call price is HIGHER than $3.71. The option does not expire until 9/30.
Showing posts with label GLD sept 30 2010 123 covered call update. Show all posts
Showing posts with label GLD sept 30 2010 123 covered call update. Show all posts
Friday, September 24, 2010
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