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Kevin Esmati
Jul 12 •
General discussion
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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Market dip in Aug–Sep & you have covered call, what can we do?
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