How to Manage Covered Calls when Stock Prices Soar!
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Chapters
0:00 Intro
1:01 Roll the Covered Call Up as you roll it out
1:40 Sell Additional Cash-Secured Puts to fund rolling the Covered Call up
4:03 Sell a Bearish Call Credit Spread to help fund rolling the Covered Call up
5:36 Buy (for a credit) a Broken Wing Butterfly that will potentially benefit if the stock continues to go up
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In this video I share 4 techniques I use to fix Covered Calls that have gone In-The-Money, ranging from easiest to the most advanced. I use my real trade examples in PSA, DLR, and SPX to illustrate these techniques in action. If you find yourself in a situation where your Covered Calls have gone deeper and deeper In-The-Money, these techniques will save you big time and address the most challenging scenarios.
Key Techniques Covered:
Roll Up Covered Call Strike: Explore the method of rolling up the Covered Call strike as you roll out. This involves extending the duration of the Covered Call, potentially longer than 1 month, while also pocketing additional cash.
Sell Additional Cash-Secured Puts: Learn how to sell additional Cash-Secured Puts to help fund rolling up the Covered Call up if you have the position size available.
Sell Bearish Call Credit Spread: Discover the strategy of selling an additional bearish call credit spread to fund the adjustment and line you up to win your In-The-Money Covered Call.
Broken Wing Butterfly: Dive into the Broken Wing Butterfly technique, offering a credit up front with the potential of added profit if the stock goes up to a certain point.
Happy investing!
Randy Perez
#coveredcall #coveredcalls #sellingoptions
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Disclaimer: I am not a financial planner and am not offering investment advice. This is an opinion channel only and should not be taken as any form of financial advice. The ideas and strategies that I discuss should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. There are financial risks involved in taking on any monetary transaction that I discuss in my videos. I may receive a small commission from the purchase of any item from using the links listed above.
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