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BCI PODCAST 48 Rolling Deep OTM Cash Secured Puts

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When stock price moves up, put value moves down. After selling an OTM cash-secured put, if share price appreciates significantly, we can close it for a small percentage of the original option sale. This podcast focuses in on whether it makes sense to roll that option up to a higher strike in the same contract month. The pros and cons of such a maneuver are discussed using a real-life example with Nvidia Corp. (NASDAQ: NVDA).

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About Alan Ellman

Alan Ellman loves options trading so much he has written four top selling books on the topic of selling covered calls, one about put-selling and a sixth book about long-term investing. Alan is a national speaker for The Money Show, The Stock Traders Expo and the American Association of Individual Investors. He also writes financial columns for both US and International publications along with his own award-winning blog.. He is a retired dentist, a personal fitness trainer, successful real estate investor, but he is known mostly for his practical and successful stock option strategies.

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