This video explains if the 20%/10% guidelines apply the same way for ITM calls as when selling OTM calls, states Alan Ellman of The Blue Collar Investor.
A viewer previously wrote, “In the BCI system, do we apply the 20%/10% guidelines the same way for ITM calls as when selling OTM calls? For OTM, it is based only on extrinsic value. For ITM, is it based on the entire premium or just the extrinsic value of the premium?"
Learn more about Alan Ellman on the Blue Collar Investor Website.