In this video, Alan Ellman of The Blue Collar Investor answers a question on closing a covered call position early to protect profits.

William of Birmingham, AL writes, "I recently purchased 300 shares of LTD at $40 a share and then wrote three covered calls with a strike of $44 expiring this month, and I collected $368.77. Now the stock is sitting just above $50. If this was your stock, and I know it wouldn't be because of the upcoming earnings report, would you just let it expire and move on or would you play this another way?"

Learn more about Alan Ellman on the Blue Collar Investor Website.