Cleared out my 250cc for this week expiration. I'd been waiting on a .03 close and decided to stop ****ing around, and close for .04. They were probably going to expire worthless anyway, but my trading rule says take the high % profit on a move down like today, so I can open a replacement position when (if) we bounce back tomorrow. These are my version of distant / low credit cc.
Also have 235s for next week. These are b/w shares that I also closed the cc on. These were only 85% gains (in 6.50, out .90) and frees those shares as well.
I'm left with Nov 275 strike puts with ~0 time value remaining. At the moment I pulled up the option chain, shares were 206.30 and the option was 68.85 to 69.45 (b/a). With intrinsic of 68.70, I'm left with extrinsic of .15 to .75. Not really 0 but awfully low.
These are 28 or 29 days to expiration - much, much earlier than I want to roll, but also getting close to where I don't want to chance it IF rolling is preserving the position is really what I want to do.
I'm asking for not-advice / suggestions for options on how to proceed:
1) Do nothing. Looking for either the share price to revert, or to take assignment whenever that happens. That'll put me into shares purchased at $275 and selling cc (run the wheel).
2) Roll now. If I roll to Jan '23 then I have a 273.33 strike available (1.67 strike improvement) with a midpoint credit of 1.83. This is marking time waiting on next quarter's financials with a bit of income thrown in for good measure. Worth noting that this is about 2/3rds of 1% over 2 months - not great by my recent standards but also not a problem to live on.
3) I have previously used BPS as a means of converting csp into far closer to the money positions that are more likely to close early. It looks like, sticking with the Nov monthly expiration, I can convert 1 275 strike csp into 11 200/176.67 for a roughly $800 credit. That gets me a rough estimate - I'd keep poking at this looking at shorter expirations and lower strikes to get closer to $50 net credit and safer position.
H'mm - I'll look more at the csp >> BPS conversion for some of these later.
Any other ideas for something more proactive than just roll and wait? THx
Also have 235s for next week. These are b/w shares that I also closed the cc on. These were only 85% gains (in 6.50, out .90) and frees those shares as well.
I'm left with Nov 275 strike puts with ~0 time value remaining. At the moment I pulled up the option chain, shares were 206.30 and the option was 68.85 to 69.45 (b/a). With intrinsic of 68.70, I'm left with extrinsic of .15 to .75. Not really 0 but awfully low.
These are 28 or 29 days to expiration - much, much earlier than I want to roll, but also getting close to where I don't want to chance it IF rolling is preserving the position is really what I want to do.
I'm asking for not-advice / suggestions for options on how to proceed:
1) Do nothing. Looking for either the share price to revert, or to take assignment whenever that happens. That'll put me into shares purchased at $275 and selling cc (run the wheel).
2) Roll now. If I roll to Jan '23 then I have a 273.33 strike available (1.67 strike improvement) with a midpoint credit of 1.83. This is marking time waiting on next quarter's financials with a bit of income thrown in for good measure. Worth noting that this is about 2/3rds of 1% over 2 months - not great by my recent standards but also not a problem to live on.
3) I have previously used BPS as a means of converting csp into far closer to the money positions that are more likely to close early. It looks like, sticking with the Nov monthly expiration, I can convert 1 275 strike csp into 11 200/176.67 for a roughly $800 credit. That gets me a rough estimate - I'd keep poking at this looking at shorter expirations and lower strikes to get closer to $50 net credit and safer position.
H'mm - I'll look more at the csp >> BPS conversion for some of these later.
Any other ideas for something more proactive than just roll and wait? THx
