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Strategies & Market Trends : The Options Box -- Ignore unavailable to you. Want to Upgrade?


To: smchan who wrote (10794)5/11/2001 11:32:56 AM
From: Poet  Read Replies (1) | Respond to of 10876
 
It depends where we are in the option cycle. If I've written a call and the LO hits at $1 but we're early in the cycle, I'll wait for some up and re-write the same call. I prefer front month calls because the time decay is faster.

If I'm repairing a position because the underlying is over the strike price and we're in the last week of the cycle, I'll "roll out" to the next month.