Alan answers a question posed by Karl, who asks:
I bought FIVE for $76.19 on May 17th and sold the June $75 call option for $2.86. As expiration is approaching the stock moved all the way up to $102.09 and I am considering rolling out-and-up to the July $105 strike. Is this a good strike to consider as I am still bullish on this stock but concerned about the paid-up risk of buying back the option ($27.50).
It’s the 2nd Wednesday of the month. Time for another original episode of Ask Alan. AA#151, “ Rolling Out-And-Up Covered Call Trade Decisions”
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