3 Poor Man's Covered Call Adjustments | Options Trading Concepts

Putting on a trade may be black and white, but knowing what to do after the fact is not as clear. Let @doughTraderMike show you three adjustments he may consider when trading a long call diagonal spread, otherwise known as a "poor man's covered call"! New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors. Click the link below to learn more: http://ow.ly/10D25O Follow: @doughTraderMike Use the hashtag #whiteboard to discover more options trading concepts! ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Watch tastytrade LIVE daily Monday-Friday 7am-3:30pmCT: http://ow.ly/EbzUU Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1 Follow tastytrade: Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/tastytrade Pinterest: http://www.pinterest.com/tastytrade/

Comments

1. Greetings ... on the original TastyTrade PMCC video I found an answer to the obvious question ... what happens if in the 0.001% chance my 1 SHORT call is assigned. TastyTrade responded that the 1 LEAP option covers me ... but my question is what happens if I fall off the planet, do nothing ... does the Market Maker come in on that Saturday and SELL my LEAP contract to then be able to provide the 100 shares of stock that Im obligated to pony up because of it being assigned? Thanks! THAT part has me confused ... or is it MY obligation to UNWIND the LEAPS option. Thanks!!
2. it will still compromise my roi
3. I don't want to lock all my money on 2 a bull call spress and the rest of my money on assignment
4. please talk about assignment
5. What do you do if the stock jumps dramatically and puts your short in the money? What would happen if it expires in the money?
6. On a stock such as F at around $12, what would be the appropriate spread width? Should it be scaled down to about 4 instead of 10? Thanks.