Last Monday, June 12, our fearless, intrepid investor wrote (sold) covered calls on SPY, $5.00 out-of-the-money, expiry date Friday of the same week, that is, June 16 (C 16JUN23 435.00). Combining the premium income with the market rise, she made a decent amount of money. However, SPY rose by more than five dollars, and she was assigned and was entirely in cash.
In a rising market, simply holding a security will produce better results than writing covered calls on it.
What will she do when the market opens today?
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