Greetings--
I thought the earnings call would be hated by Wall Street. So I sold some calls and bought puts-- weeklies.
When I was wrong, I rolled the calls out and up a month. But then I proved to be really wrong and the price kept rising. These calls were sold against my TSLA Shares in a non-margin account.
So, I bought time and safety by rolling the calls out to above my total cost of the shares. But this required rolling them out many months. Now if Tesla takes off and I lose my shares, I won't lose money on them. And I have some months to fix the position.
Just not sure what to do. Because we are now down a bit, the calls I sold have declined in price... I can BTC some of them, but that locks in my loss. Probably the best move... and hope we are flat so they erode and I can take more of them off the table over time.
But I feel like there should be a counter move I can make. I could buy lower priced calls, turning it into a vertical spread. But that far out buying calls is expensive.
Any advice appreciated-- or a link to an article about what to do when you sell calls against your stock and the stock rockets up.
I thought the earnings call would be hated by Wall Street. So I sold some calls and bought puts-- weeklies.
When I was wrong, I rolled the calls out and up a month. But then I proved to be really wrong and the price kept rising. These calls were sold against my TSLA Shares in a non-margin account.
So, I bought time and safety by rolling the calls out to above my total cost of the shares. But this required rolling them out many months. Now if Tesla takes off and I lose my shares, I won't lose money on them. And I have some months to fix the position.
Just not sure what to do. Because we are now down a bit, the calls I sold have declined in price... I can BTC some of them, but that locks in my loss. Probably the best move... and hope we are flat so they erode and I can take more of them off the table over time.
But I feel like there should be a counter move I can make. I could buy lower priced calls, turning it into a vertical spread. But that far out buying calls is expensive.
Any advice appreciated-- or a link to an article about what to do when you sell calls against your stock and the stock rockets up.
