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ANSWERED! Deep In The Money Covered Call On Indexes?
Mr. OppiE answered Nikhil Gupta's question of "I read about deep in the money covered calls. I want to know Can deep in the money covered calls strategy should also be performed on indexes inspite of stocks, should I buy index futures and sell deep in the money covered calls? " for free at Optiontradingpedia.com Answers!
ANSWERED! Combining Deep In The Money Covered Call with Long Straddle?
Let's say I open a bull call spread by buying a $50 call for $3 and selling a $55 for $2. If the stock price falls to $45 for example, why can't I buy back the $55 call I sold for cheaper and make that profit? For example, if the $55 call is now worth $.50, why can't I buy it back and make $1.50 on that and then simply lose the net debit I paid for the spread?