Covered call writers can avoid exercise by closing the call and replacing it with a later-expiring one. But some pitfalls can occur along the way. The forward roll works because a later-expiring ...

Michael C. Thomsett is a widely published options author. His "Getting Started in Options" (Wiley, 9th edition) has sold over 300,000 copies. He also is author of "Options Trading for the Conservative ...

) was at $40.28 on 4/2/12. You had previously sold a 38 call and gotten 1.25, which by 4/2 was worth 2.05. You could buy to close and roll to a May 19 39 call and get 2.25, picking up 0.20 (which ...