If you have ever sold a covered call and then had the stock take off, you are sure to regret it. The lost profit is enough to make you pull your hair out especially if the stock had been sitting in a trading range for quite some time. Rather than having to spend a lot of money buying back the call and rolling up, there is another alterative. Consider selling puts on the stock instead while you wait for the stock to decline or settle into a new trading range. Let's look at an example to explain what I mean.
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Selling Puts
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