Brian Lee
Jul 26, 2025
Sometimes it’s better to wait before making your next move.
When trading covered calls, we often buy back the call option after its price drops to lock in a profit. When trading the stock itself, we usually sell shares after the price goes up.
In both cases, acting too soon can hurt your results. If you buy back the option before the price drops—or sell the stock before the price rises—you might miss out on the gains.
That’s why this strategy includes a planned wait time before taking action. We call this wait time \(T_{wait}\).