Re selling calls in the morning, it depends it they are ATM, ITM or OTM. If ATM or ITM then they will decay much less as there is less vol and more delta in the price of the option. OTM's take the significant vol hit I've found.
Also, setting a trailing stop in the morning pre open isn't a bad idea, then you could ride the wave up, but the trail protects any gains.
April 17th, 2014 at 10:46 am
Re selling calls in the morning, it depends it they are ATM, ITM or OTM. If ATM or ITM then they will decay much less as there is less vol and more delta in the price of the option. OTM's take the significant vol hit I've found.
Also, setting a trailing stop in the morning pre open isn't a bad idea, then you could ride the wave up, but the trail protects any gains.