Options Bootcamp 30: Back to School, Back to Basics

Basic Training: It's that time of the year again. The kids are back to school, so let's go back to school as well, and refresh our listeners on the options basics. What is an option? How do options work? What is a multiplier? What are the greeks: Delta, Gamma, Theta, Vega. Long premium vs short premium. Option Drills: A review of the basic positions: Long call - Short call - Covered call - Long put - Basic vertical spread - Collars. Others can be found in previous episodes. Mail Call: Question from Dave S. - In the Options Boot Camp podcast #28 and #20 you discussed buying deep in the money LEAPS and selling shorter term calls against them. If the calls you sold expire worthless everything is great. What happens if the underlying goes up and the calls you sold are in the money at expiration? Is it better to just buy back the calls or let them get exercised? Can you discuss the process if they are exercised? Do I need to sell the LEAP to cover the call that was exercised?