Using Both ITM & OTM Covered Calls to Align with Current Market Conditions click ↑ 4 FeaturedWhen establishing our covered call portfolios (cash-secured puts, too), our strike selection is influenced by current market conditions. In normal-to-bull markets, we favor out-of-the-money (OTM) strikes which allow for a 2-income stream potential (premium + share appreciation from current market value up to the OTM call strike). In bear- volatile markets, we may promote in-the-money (ITM) strikes which provide gre ...