Should I keep rolling my covered call to a higher strike and further out expiry if I don't have enough buying power to buy back the option as a single leg, given that the stock could start to get squeezed?

Asked 5 years ago

I have rolled out my AMC covered call twice so far, and currently, it's sitting at strike 60 for September's expiry. I don't have enough BP to buy back the option as a single leg, and so far, my only option is to keep rolling it out to a higher strike and further out expiry, should AMC start to get squeezed during the next several weeks. How would you handle this if you were in my situation?

Selling covered calls Buying power Squeeze Trgovanje opcijama

Andia Rispah Igobwa

Wednesday, June 23, 2021

To keep holding on to your shares, rolling a covered call is an excellent strategy.
However, you should only go with this option if you feel the stock's move up won't last.
If not, it's wiser to incur the loss and start over the following month.