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

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

Oct 12, 2019 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

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 first two). First, we must determine if an exit strategy opportunity actually...
Rolling Up in the Same Contract Month: Comparing Before and After Scenarios

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

Mar 5, 2016 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

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...