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Coverered Call Roll for VEEV | PowerOptions Web Log
Analysis of Roll outs for a VEEV Covered Call Introduction: VEEV @ $114.65 +1.38 (1.22%) currently has advanced strongly over the last month or two. In the month of January 2019 VEEV had advanced from about $82 to a recent high of $116. Writing covered calls (CC) has the problem of limiting the up-side gains of a stock. Investor’s compensate for the limited gains by rolling up the strike price to participate in the upward movement of the stock. The CC strike price for VEEV has been raised several times from $95 to $100 to $105 currently. And along the way the $95 protective put has been sold to avoid further time value decay. At the same time a covered call has been written and the stock price allowed to go ITM to provide some downside protection. Problem presented: We are again considering rolling the $105 strike call as the...