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Define: Deep In The Money Covered Call

Deep in the money covered calls are covered calls that write call options that are deep in the money.

Deep In The Money Covered Calls use deep in the money call options with delta near to 1 rather than out of the money call options in order to profit from the small extrinsic value of deep in the money call options with an extremely high probability. In fact, the probability of profiting with a Deep In The Money Covered Call is so high that it is almost an arbitrage.

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