dan...."roll forward your calls"
the only caveat is that rolling forward is a conscious decision that the stock will continue an uptrend. in a volatile bear trending market as we have had for a while, a collapse of the share price will only increase the cost basis of the position.
until a clear overall market trend is confirmed, then perhaps better to allow the position to be called away, take the profit, hold cash, and wait to reset on a pullback......on the pullback to the low end of the trading range, one may consider adding to cash by selling a put with a strike at or under the underlying stock price.....if you are not able to monitor monthly sales, then look at leaps that will return 20% or higher against cash/margin capacity....better then money market, and should the stock explode upwards, easy to close out and follow up with higher strikes...
just a thought, but more a warning, as many got burned rolling up in the bull market, and had no room to roll, when the trend reversed...better to grasp the concept that when you write the cc, you are satisfied with the premium and having the stock called away, this takes discipline, but allows one to nibble at profits consistently..
good luck
ed a. |
