This is a fairly basic option strategy that allows us to collect a cash premium from the market by obligating ourselves to buy stock at a lower price than where it’s currently trading. The most important thing to watch out for is to make sure that support does not break down on OIH. As you can see from the chart, the stock is holding the rolereversal support level around $42. We don’t want the stock to close below $41 because that would tell us the buyers are no longer willing to hold the price up and the sellers will move in from there.
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