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BCI PODCAST 93: WHEN CALL STRIKES MOVE DEEP ITM EARLY IN A CONTRACT

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After entering a covered call trade and share price accelerates substantially, the strike is deep ITM. There are 3 potential paths to follow which are explored in this video:

1. The mid-contract unwind exit strategy
2. Rolling the option
3. Take no action and “allow” assignment

A real-life example with Black Rock Inc. is used to highlight the strategies.

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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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