The Critical Investing Workshop Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : The Critical Investing Workshop

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: DepyDog who wrote (31376)	8/31/2000 3:53:35 PM
From: Sully-	of 35685

Depy, rolling up & out.... Does that mean buy a call further out, monthwise and or amount wise? .... Depends on the individuals situation..... generally rolling up & out is to keep the underlying shares that have appreciated beyond the original strike price..... If the underlying shares are a $$$ generating vehicle, then those folks would be looking to protect the vehicle & pick a strike price far enough out to pay for the short term loss on the call they just uncovered & put a little $$ in their pocket. In that case you may end up going more than one month out & also to a higher strike price..... it could be either of those, or both..... Again it would depend on the individual's situation & also on how the underlying vehicle is moving as well.... not to mention other factors that will affect their up & out decision, like their original cost basis in the underlying stock, etc., etc. Any one else have anything to add???? Ö¿Ö Tim

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next