Explaining “Bought-Up” Value When Rolling a Covered Call Out-And-Up

Explaining “Bought-Up” Value When Rolling a Covered Call Out-And-Up

One of our key covered call writing exit strategies is rolling an option when the strike is in-the-money at expiration and we want to retain our shares. We can roll-out to the same strike at a later date or out-and-up to a higher strike at a later date. For both....