Hey guys!
I’ve started selling options and i have an important question(s) before i go any further.
Recently I sold a call option and placed my 100 shares as collateral (does that make it a covered option?). As time went my collateral shares were up 5% and the option i sold stayed the same price.
Time kept going and the option i sold starts making good money for me because the stock starts dropping- but so are my collateral shares I’ve been holding throughout the option i sold.
Am I able to sell my collateral shares and replace them? Could i have sold my 100 shares for that 5% profit, waited a day and replaced the 100 collateral shares with a lower price than i originally had as collateral?
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