Tham khảo tài liệu 'trading strategies profit making techniques for stock_7', tài chính - ngân hàng, đầu tư chứng khoán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 172 OPTION STRATEGIES The break-even point is raised by the amount of the debit. However you could combine the rolling down with rolling forward to the next expiration month as a potential tactic to reduce the debit. If the Option Is About to Expire You are faced with several decisions if your puts are about to expire. The time premium will have essentially vanished. There is no desirability to holding a short put if the time premium is gone. You should either liquidate the trade or roll forward and or down. The decision is largely based on your market expectation. If your covered put position is profitable you need to ask if your attitude on the market is bullish or bearish. 1. If you are bearish roll forward into the next expiring option month if the premium levels are attractive. You are in effect initiating a new position so the criteria for entering a new position apply. For example you need to decide if an in-the-money or out-of-the-money put is appropriate. A criterion for determining if you should roll forward is the return per day. However it is only applicable for rolling forward into the same strike price. For example you might be able to make 435 for the 23 days left on your current write but 1 919 on a write on the next expiration month that expires in 83 days. Your return per day on the current write is 435 23 or whereas the write on the next expiration month returns 1 919 83 or . 2. If you are bullish you should probably liquidate the trade. It is rarely wise to carry a covered put when you are bullish unless you are expecting a slight and temporary rally in the market. You can always write another put on the next expiration cycle when the rally is over. If the option is about to expire and your total position is unprofitable you have a couple of alternatives 1 liquidate the trade unless you see an imminent market turnaround or 2 if you are still bearish you could roll forward and up. DIVERSIFICATION OF PROFIT AND PROTECTION The goal of .
