Recent discovery and follow-up to cover calls versus rolling puts.

With the rebound WDC I am back to break even after 3 weeks after a 17 point drop. However the covered calls have recovered quicker than the put rolls. Bottom line is that is probably more efficient to accept shares and convert to covered calls instead of continuing to roll the puts. It will still take me another 3-4 weeks to break even on the put rolls which is money that remains tied up. The CC will close next week giving me money to trade with again.

Sometimes better to sell an ITM covered call instead of a put on the weeklys especially on stocks that have an upside bias. Looking at a trade on SVXY the other day at the 76 strike, the covered call would have made $1290 on 10 contracts and the put only $1100 on the same number of contacts. The extra money would more than offset the exercise and assignments fees and just as easy to roll the calls. Plus rolling the calls usually gives you more capital gains as well.