The cost basis of a managed trade can be confusing as stock and option values are changing with each step of the trade series .The sequence of trades involved opening a covered call position, rolling out-and-up, and finally the mid-contract unwind exit strategy where both legs of the trade were closed. Option-selling calculations allow us to make the best trading decisions every step of the way and The cost basis should be the value of the stock at that point in time. How do you make informed decision when trade ?

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