beginners corner
Tag Archives: mid-contract unwind
covered call writing calculations

Managing In-The-Money Strikes When Share Price Moves Higher

When we sell in-the-money call options, we are generating initial time-value profit that meets our stated goals plus creating downside protective of that time-value profit in the form of intrinsic -value. The disadvantage of these options is that we do not benefit from share appreciation because of our contract obligation to sell at the lower […]

30 Comments Continue Reading →
option chains for covered call writing

Temporary Self-Loans for the Mid-Contract Unwind Exit Strategy

The mid-contract unwind (MCU) exit strategy is a position management maneuver we use to generate a second income stream in the same month with the same cash investment. The opportunity arises when share price moves significantly higher than the short call strike in the first half of a contract. This article will highlight a real-life […]

66 Comments Continue Reading →
exit strategies for covered call writing

Rolling Up in the Same Contract Month: Comparing Before and After Scenarios

Rolling up is a useful exit strategy for both covered call writing and put-selling. However, in my humble opinion, it rarely benefits us to roll up in the same contract month. The main reason for this conclusion is that we are dealing with a stock that has substantially appreciated in value in a relatively short […]

28 Comments Continue Reading →