This is crazy…
You’re running a covered call strategy. You buy 100 shares of a stock at $16.91…
Normally, you’d sell an out of the money option at maybe $18 or $19 and collect some premium.
However – there is a strategy for selling Deep In The Money options.
So you’d sell a $15 strike – knowing the option has a high probability of being exercised…
WHY IN THE WORLD WOULD YOU DO THIS?
It’s crazy, right?
Not so fast…
In the right situation, you can actually get MORE downside protection… and generate a higher return!
You’ve got to read this article… it explains it all.
It’s an interesting tool to add to your covered call trading knowledge.