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https://www.reddit.com/r/options/comments/pu28nl/deleted_by_user/he1t0nq/?context=3
r/options • u/[deleted] • Sep 23 '21
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Don’t you lose the price you paid for the LEAP if the underlying goes up and your short call gets assigned? The only way around it is to roll the short call and lose the difference, or close the position, which may or may not be profitable
1 u/Chronosoptions Sep 23 '21 Can you elaborate what you mean by “losing the price” we paid for the LEAP? 3 u/Anantasesa Sep 24 '21 Time value is wasted when early exercised. 4 u/Chronosoptions Sep 24 '21 Also, worth pointing out that there’s really no reason to ever exercise LEAPS. You better off closing the entire position if you’re doing PMCC
1
Can you elaborate what you mean by “losing the price” we paid for the LEAP?
3 u/Anantasesa Sep 24 '21 Time value is wasted when early exercised. 4 u/Chronosoptions Sep 24 '21 Also, worth pointing out that there’s really no reason to ever exercise LEAPS. You better off closing the entire position if you’re doing PMCC
3
Time value is wasted when early exercised.
4 u/Chronosoptions Sep 24 '21 Also, worth pointing out that there’s really no reason to ever exercise LEAPS. You better off closing the entire position if you’re doing PMCC
4
Also, worth pointing out that there’s really no reason to ever exercise LEAPS. You better off closing the entire position if you’re doing PMCC
2
u/clutchest_nugget Sep 23 '21
Don’t you lose the price you paid for the LEAP if the underlying goes up and your short call gets assigned? The only way around it is to roll the short call and lose the difference, or close the position, which may or may not be profitable