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Non-Tech : The Critical Investing Workshop
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To: DepyDog who wrote (31373)8/31/2000 4:03:43 PM
From: Jill  Read Replies (1) of 35685
 
It depends. If you bought calls, it means selling them and buying more calls (cheaper) further out (higher strike price and/or later month), to maximize leverage, if your stock is on a run.

If you sold covered calls on your underlying, and the underlying is shooting up you can buy back the call for more than you paid, and sell another call further out to recoup your "lost" premium. I.E. in early Aug I sold cc on ORCL Sept 85s for 5 and they're about 7 now or so. I'll watch and wait but if we continue on a tear, I either let myself get called away at 85 (probably) or buy back the calls (whose premium will be deteriorating because of time, might as well wait in this volatile market anyway) and sell for Oct, maybe 90 or 95
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