Hello all. I'm looking for some thoughts (not advice yada yada) on how I to manage the situation I'm in (which isn't terrible). First of all I've been doing this for about a year now and have been successful (for my standards/goals) being conservative with one of my brokerage accounts and strikes chosen. I started Jan 2021 with an account balance of ~$400K (includes 400 TSLA and various other holdings + cash) and grew it to ~$750K as of today. Total 2021 options income was ~$175K. I did this by selling weeklies with 10-20% OTM on average and letting the contracts expire/BTC the majority of the time.
Anyway, here is what I have going into next week that is causing me stress (don't laugh). 1/14 +650/-950 BPS. They are 7% OTM and not yet in trouble, but I'm very bearish going into the 1H of 2022 and I think these will go ITM this week due to macros. Whenever I roll I always look to improve strikes and if possible reduce the number of contracts. My goal week to week is to let all the contracts expire (or BTC at 90% profit) and only use 20-30% of my margin. I very rarely roll so that is why I'm posting in anticipation.
Here are some strategies I'm considering...
1) Nothing and hope they expire worthless or close out for a profit on any rise, but I'll be stressed
2) Roll to 1/21 650/950 for small credit while reduce the # contracts
3) Roll to 1/21 600/900 for small debit (I don't love these strikes because they don't meet my 10-20% OTM goal and are 2 weeks out)
4) Roll to 1/21 700/850 and double the # of contracts to increase likelihood of expiring worthless
5) Wait until 900 and then roll for to same strikes and small credit
Oh and I don't have any margin issues yet. I'm only using about 20% of my available margin. Half of these are covered by cash too.
I'm leaning towards #1 until the stock drops below 990. Once 990 hits I'll go to option 2. Option 4 will probably increase my stress level because the quantity of contracts.
Good news is I'm building my risk tolerance muscle
:edited to say my situation isn't that terrible in first sentence and added 5th option