When our covered call strikes are in-the-money as expiration approaches, we can avoid exercise by rolling the option, explains Alan Ellman of The Blue Collar Investor.
We can roll out to the next month same strikes or roll out and up to the next month higher strike. We always roll out to an in-the-money strike, but we can roll out and up to an in-the-money, at-the-money or out-of-the-money. BCI calculators will run the returns gleaned from option-chain information.
Learn more about Alan Ellman on the Blue Collar Investor Website.
