Alan answers a question posed by Martin, who asks:
I’m using the poor man’s CC to trade. My question is what to do when the LEAPS gets OTM or how do you manage that trade?
I bought PPL LEAPS (January 2021) call at 30 strike when the stock was trading at 35.42 and way before this crash. But now the stock is at 25 and not too many good strikes at the 30-ish level I am a bit unsure how to trade it from here.
Thank you for your input! Martin
It’s the 2nd Wednesday of the month. Time for another original episode of Ask Alan. AA#178, “Poor Man’s Covered Call Managing Unusual Circumstances” you can! Become a premium member today, and tune in to the educational power of the complete library!
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