Forum: Options
December 9th, 2014, 05:15 AM
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Replies: 7
Views: 4,605
Depends. You keep the premium, but you have to...
Depends. You keep the premium, but you have to pay something to close it, if current market price (when you close it) > premium you received then you make a loss on that short call. If it is ITM by...
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Forum: Options
December 8th, 2014, 07:20 AM
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Replies: 7
Views: 4,605
Yes the long call can be sold/closed any time...
Yes the long call can be sold/closed any time until expiration.
When playing this type of spread you should plan to never transact in stocks (as your aim was "poor man's covered call" meanning...
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Forum: Options
December 8th, 2014, 02:19 AM
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Replies: 7
Views: 4,605
The formula works, at expiration. Repeat: at...
The formula works, at expiration. Repeat: at expiration. Before expiration you can only estimate (softwares do this pretty accurately for the short term) the underlying price for breakeven point,...
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