When should you ROLL OUT a COVERED CALL Position (When should you ROLL SHORT CALL OPTIONS)

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⏰Chapters ⏰
0:00 Intro
1:38 Why I like covered calls in dividend stocks
1:47 Two real life examples of when and how to roll call options CME
3:18 Role of dividends in covered call options
5:03 When should you roll a covered call option
5:18 When should you roll covered call option on non dividend stock
7:00 What to do if a covered call option is deep in the money
10:34 When is it not worth rolling a covered call option out
12:55 BONUS: How to easily keep track of time value left in covered call option

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In this video I’m going to show you the simple process I go through to decide when is the right time to roll out a covered call option. Then I’m going to show you exactly how I roll out covered call options using real-life examples. By the end of this video you’ll know when and how to roll your covered call option positions!

Doing covered call option spreads in Dividend Stocks is my second most favorite way of using options to generate monthly cash flow. One of the reasons why I like it so much is that on top of the option premium you receive by selling covered call options, you’ll also be receiving dividends along the way.

Here you see one of the positions I’m in right now in the CME Group. If I want to keep this position in CME, then I need to make sure I roll this covered call option if the extrinsic value or time value of this option is less than the dividend that I will receive. That’s an important factor in a dividend paying stock. What about if a stock is not a dividend paying stock or is not about to go ex-dividend? When should you roll those covered call options?

Here you see the covered call position I have in AFLAC. Is this the right time to roll this covered call option?

Next we are going to talk about another position that in my opinion, it’s just not worth rolling the call option out and what I want to do about it. This position is in Abbvie ticker symbol ABBV.

Bonus: two ways I keep track of how much time value is left in the covered call options I have sold.

#optionstrading #coveredcalloptionstrategy #rollingcoveredcalls

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