Emoney, I’d be down to learn more about this. Are you selling covered calls and using the proceeds to buy the underlying stock? I’ve been learning calls and puts for a year or so. I’ve never actually rolled the call itself. I only closed at a gain or usually let it expire worthless. I’ve also never exercised a call. I recently started selling cash secured puts to buy at lower prices and/or collect premiums.
Discussion
Happy to help. I didn’t know how it worked either until the beginning of 2025. As soon as I sell a covered call, I immediately put in an order to roll it at the premium of my choosing. I always select “Good till canceled” on the roll. When rolling a covered call, I try to get paid about half the cost of one share. So if I’m rolling an IBIT covered call I will set my price about .25 ($25).
I’ll study on this idea. Thanks for sharing
It works really great when price is chopping or going down. Instead of rolling up and out I’ll roll it down a bit that same week. Allows you to buy the dips at no cost to you. If price is really running up fast I will accept less money to roll up and further out in time. Start small and experiment, it’s an amazing tool if you don’t want to sell.