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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (18872)	5/10/2002 4:55:33 PM
From: yard_man	Respond to of 74559

if it goes far enough ITM, you can buy back the calls and sell the higher strike, i.e. roll up -- that can often be quite profitable for a stock that is trending up. As the calls go far into the money the premie goes out -- buying them back and selling the next strike close to expiry is better than letting yourself be called if you are anticipating do the same thing again. You reap most of the premie that way and still have the position.