Pretty new to selling covered call options and I am posting to see what people think about letting the options get exercised if they are in the money versus selling to close the option position. Any thoughts of letting the position get exercised thinking the price will eventually drop and you can buy it back at a gain?
Exercising covered call options.
byu/Expert_Statement_847 inoptions
Posted by Expert_Statement_847
1 Comment
letting it get exercised is totally fine, that’s basically the intended outcome of a covered call. You get max profit (premium + strike), and you avoid overthinking timing, trying to sell to close and then buy back later is just adding a second trade that you can easily get wrong. ngl the mistake beginners make is getting attached to the shares instead of treating it like a trade with a predefined exit
if you’d be happy selling at the strike when you enter, just let it play out and redeploy after