alterac000
Member
Good day
Several weeks ago I posted about my June 620cc's gone wrong when the sp made a large sustained move up. I had rolled out to 705cc expiring today. Happy to report after over 7 weeks of waiting I was able to btc for $1.5 today. Looks like I could have waited another couple hours and bought back for even less but I am satisfied considering along the way the position reached somewhere in the $60 range.
Like others I have also been selling bps and today rolled my 8/13 580/560 to 690/650 for $6.05.
To the recent post about $800 open calls expiring Jan 22, I have had a similar predicament for my $700 open Jan 22 calls. My cost basis was about $163 and as of this writing worth ~$98. I don't know we will reach $863 for breakeven despite recent week's positive direction. I do agree with responses about minimizing loss. I think my strategy will be to continue selling aggressive CCs against these calls. From now until January this won't be equal to just selling the open calls today, but it will allow me to "stay in the game" in case we do see large positive movement plus IV increase from now until then. In your case I don't know your brokerage will calculate the margin requirements to say, sell a $740 or so cc against your $800 open calls, but that needs to be taken into consideration in terms of what you can realistically aim to accomplish with CCs if you go that route over the next few months.
In retrospect the open call bet was clearly a bad move but forced me to learn how to use call debit spreads. I recommend looking at these unless you simply have gambling money that you are ok losing
Several weeks ago I posted about my June 620cc's gone wrong when the sp made a large sustained move up. I had rolled out to 705cc expiring today. Happy to report after over 7 weeks of waiting I was able to btc for $1.5 today. Looks like I could have waited another couple hours and bought back for even less but I am satisfied considering along the way the position reached somewhere in the $60 range.
Like others I have also been selling bps and today rolled my 8/13 580/560 to 690/650 for $6.05.
To the recent post about $800 open calls expiring Jan 22, I have had a similar predicament for my $700 open Jan 22 calls. My cost basis was about $163 and as of this writing worth ~$98. I don't know we will reach $863 for breakeven despite recent week's positive direction. I do agree with responses about minimizing loss. I think my strategy will be to continue selling aggressive CCs against these calls. From now until January this won't be equal to just selling the open calls today, but it will allow me to "stay in the game" in case we do see large positive movement plus IV increase from now until then. In your case I don't know your brokerage will calculate the margin requirements to say, sell a $740 or so cc against your $800 open calls, but that needs to be taken into consideration in terms of what you can realistically aim to accomplish with CCs if you go that route over the next few months.
In retrospect the open call bet was clearly a bad move but forced me to learn how to use call debit spreads. I recommend looking at these unless you simply have gambling money that you are ok losing