Re: Advice when selling covered calls, in or out of the money?
FWIW selling a covered call, with a strike at $75 on a $90 stock cuts off all possibily of gain if the stock closes above $90. If the stock drops below $75, or so(*), you still loose.
(*) actually $75 - price of covered call.
You also loose use of your money until the option expires (or you sell the stock). Probably not a big deal at 2% to 4% interest rates.
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