Covered Call Exit Strategy

[TimtheEnchanter]

Sure you can. It's called a "cash secured put" and you can most certainly do it in an IRA. You just can't short a call outright although you can basically get the same thing by doing a vertical spread with the long side far enough away.

Tell it to my broker...

 

[7out]

Tell it to my broker...

I agree, in Canada they also won't let you go short Puts (even cash secured) in registered accounts - so have to do synthetic puts with stock and covered calls.

 

[DTB2]

On theory atleast, you want to continue selling calls against your 200 shares of BABA over and over again, until, it finally, gets called. That way, you maximize the premiums you collected. You want out of the money calls in that you want it to expire worthless and you to keep the premiums.

CC is a mildly bullish trade. As such, you want every one to get called away. That's the goal.