beginners corner
Tag Archives: rolling up

Rolling Up in the Same Contract Month: A Real-Life Example with KMX

Position management or exit strategies for covered call writing and selling puts is the third required skill to achieve the highest possible return levels (stock and option selection are the […]

10 Comments Continue Reading →
put-selling calculations

Rolling Deep OTM Puts to a Higher Strike: A Viable Mid-Contract Strategy?

After selling an out-of-the-money (OTM) cash-secured put and then stock price accelerates substantially, the put value will decline. Share price and put value are inversely-related. This allows us to take […]

23 Comments Continue Reading →
selling cash-secured puts

Rolling Up When Selling Puts To Buy A Stock At A Discount

Selling out-of-the-money cash-secured puts is a fantastic way to buy a stock at a discount. It can be used in lieu of setting limit orders. If exercised, our cost basis […]

38 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 […]

28 Comments Continue Reading →
exit strategies for covered call writing

Rolling Up in the Same Contract Month: Evaluating a Real-Life Trade

Mastering exit strategies is one of the three required skills for covered call writing as well as selling cash-secured puts. In this article I will review and evaluate a real-life […]

20 Comments Continue Reading →
covered call writing calculation

Evaluating Returns When Rolling Out And Up

Covered call writing and put-selling calculations must be accurate and preferably understood by option-sellers. I created the Ellman Calculators to facilitate the authentic computations we depend on. In this article, […]

23 Comments Continue Reading →
Exit strategies for covered call writing

Covered Call Writing: Generating Additional Income When A Stock Price Gaps Up

Mastering option trading basics includes incorporating exit strategies into our portfolio trades. These opportunities present themselves both when a stock prices declines and accelerates. Recently, a premium member presented me with […]

7 Comments Continue Reading →