Market dip in Aug–Sep & you have covered call, what can we do?
  • August and September have the worst average S&P 500 returns of any months over the past ~70 years
  • If you have covered calls expiring in September
  • You might push calls out to January to have a higher time value (take advantage of being bullish in July)
  • If the market crashes hard in September, January calls lose value, then you could buy to close cheaply options or roll down the strikes
  • Another option is to adjust delta strikes for September (lower Delta on the sold covered calls)
  • What do you think?
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14 comments
Kevin Esmati
7
Market dip in Aug–Sep & you have covered call, what can we do?
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