Repairing covered call

Discussion in 'Options' started by dream_maker, Apr 7, 2008.

  1. Just buy them back at a loss and sell the higher strike. Trying to wait on a call to drop in price can be hazardous to you trading capital. In the case where the underlying has had a change in trend you'd be fighting the market if you choose not to adapt.

    Don't let this loss be expand to the point where it becomes much greater. Your sucess as an option writers depends on your ability to control losses.
     
    #21     Apr 14, 2008