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I am a huge fan of being short premium. I like the covered call, and the 1 by 2 front spread. I like call spreads as well...if the product can be sold at a good level, I am a fan. As with all trades, before I enter, I do some modeling in my head as to what will happen to the position under a given set of scenarios. Generally speaking, one that I pay little attention to is IV rallying and the underlying rallying at the sometime. However, that doesn’t mean it can't happen. A classic example is what is going on with AAPL right now.
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