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SE MN | It is something I have started doing the last few years after being frustrated with the gains I could accomplish by rolling my calls up. I buy OTM calls for around $0.05 and if the market takes off like it has the pay few years I can then sell my ITM calls as opposed to trying to roll them.
As an example, if I want to roll my $6.00 Dec 22 calls up to $8.00 right now I would net about $0.95. Now I can sell straight up and keep the $1.55.
I’m sure I should be studying the Greeks of the transaction but I’ve never done that. Lots of people on here that really know what’s up with options and it’s pretty impressive to me.
I guess the main thing I have learned is that an option doesn’t need to close in the money to be profitable. So many times in threads that is the way it is presented and it’s not the case. I know it seems simple but that’s a big deal for people who have never used options to understand. | |
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need help/education on speculative options
