Short selling restrictions lapsing on broker-dealers combined with options expiration week (lots of open interest with strikes below the current price) means that we are seeing downward pressure. It might be temporary or it might be another few weeks of financial doom and gloom.
Either way, this is a good time to take profits on any calls (naked or covered) on financials (WB, BAC, BCS). I am closing some August 17.5 and 20 WB calls and also closing some September 20 calls. The plan is either to write lower strike calls for more time premium or to wait for an uptick. Which happens depends on price action for the rest of the week.
Either way, this is a good time to take profits on any calls (naked or covered) on financials (WB, BAC, BCS). I am closing some August 17.5 and 20 WB calls and also closing some September 20 calls. The plan is either to write lower strike calls for more time premium or to wait for an uptick. Which happens depends on price action for the rest of the week.
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