Handling Deep In The Money Covered Calls – Investor Questions – May 25 2018

A quick question from an investor on a trade that is ending today in Whiting Stock WLL Stock. The investor finds himself holding deep in-the-money covered calls and wondering if he can improve his return.

I just received this email this afternoon around 2:00 PM so there is not a lot of time for covered calls ideas. Therefore here is a shortened response on how I would handle this trade.

Let’s review the question and look at some answers.

Investor Questions:

Teddi,

I have a covered call position in WLL: 10 contracts @$33.50 expiring today – 5/25/18. The stock is at $48. Should I just let it expire, or there is a way to improve on this trade?

Thank you,

Dima

  This strategy discussion article is for FullyInformed Members.

Handling Deep In The Money Covered Calls – Investor Questions – May 25 2018

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.