Covered Calls – Monitoring Trades

Posted on admin No Comments

The share price increases this is great for your trade and there are three things you can do:

1. Do Nothing

2. Roll out sold call for a small credit to avoid unwanted option exercise

3. Wait to be exercised and lock in profit

The share price falls there are a number of different things you can do with the covered call position:

1. Do Nothing

2. Close out of entire position sell shares and buy back sold call

3. Buy back sold call

  • This will be bought back at a lower price and therefore locking in a profit.

4. Protect Capital

  • Buy a put option to if you think the share price will continue to fall
  • This will reduce the risk of the trade significantly
  • More information on protecting shares from a fall can be requested.


To receive ASX Option Recommendations or to learn more about The Covered Call or The Buy – Write Option Strategies please request the Covered Calls eBook by contacting us on 07 5504 2244 or info@totaloptions.com.au