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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: FaultLine who started this subject6/7/2001 10:10:02 AM
From: i-node  Read Replies (1) of 5205
 
I have a stock that, when in the high teens, I sold the OCT 22.5 calls, and when in the low 20s, sold some JUL 25 calls on different shares. Now, the stock is trading around 26-27-28, so I'm trying to figure what the best approach is now. I prefer to avoid excercise, if possible, for the time being.

I'm thinking about rolling the JUL 25 calls out to OCT 25 which would put about $220/ea in the bank, with the hope that I would get a chance to buy back on a dip.

My question is -- does it make sense to roll them out without rolling them up at the same time? By rolling out only, I put a little money in the bank and at the same time reduce (but not eliminate) the risk of getting called in the near term. I'd appreciate others' views...
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