My strategy is as a call writer (covered calls). I am looking into buying an OTM Put as insurance on my stock (as well as allowing me to borrow more) but the question is, if the stock gots up and I get exercised what do I do with the purchased Put?
I could just buy more stock and continue, but what if I don't want to.
How do I get rid of it!!! If I close the position wouldn't I loose the time/money still left in the put?? But if I sell it and the market goes down aren't I then forced to buy the stock? What do I do?
Or is there something I am missing??