When stock price moves higher in the middle of a contract leaving the short call deep in-the-money, we ask ourselves if an exit strategy opportunity is available, states Alan Ellman of The Blue Collar Investor.
Rolling the option out or closing the entire position at a profit are considerations analyzed in this podcast. A real-life example with TriNet Group, Inc. (TNET) is highlighted Calculations are used to explain the guidelines used in these trading decisions.
Learn more about Alan Ellman on the Blue Collar Investor Website.
