This evening I spent time with a number of members who have emailed, wondering about rolling their covered calls higher, as the rally continues to push stocks still higher. They are tempted to try to boost the profits they had made when they sold covered calls.
The investor questions were primarily the same, just the stocks were different. A good example is Target Stock, which after earnings, has continued to push higher. 8 members had emailed wondering how to roll their positions higher to earn more as the stock continues its climb.
The rest of this strategy article looks at six strategies that could be considered by investors interested in rolling covered call positions higher against stocks that are climbing in an effort to delay exercise of shares and/or earn more profits than the original trade provided.
The rest of this strategy article is for FullyInformed members.
Rolling Covered Calls Higher As Stocks Climb – Investor Questions
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Please read the full disclaimer.