I sold the short calls against the same lots a week apart, with some thought about the strikes (next week CPI/FOMOC softness; 6/30 de-risking for P&D, overall correction, etc). I realize in hindsight this requires too much prophecy and I won’t do it again. So for the next few months I just need to untangle the web smartly and carefully.
Here’s a bit more detail:
6/9
-C230 (x7) + $4.24 premium ($234.24) are against 215CB
-C245 (x18) + $0.49 premium (
) are against 243CB
6/16 - CPI/FOMOC week
-C225 (x6) + $3.80 premium (=$228.30), were to be against the same $215 because I didn’t expect $230 to hit 6/9.
-C230 (x2) + $2.35 premium (=$232.25), same
-C243.33 (x19) + $1.45 premium (=$244.78), same
6/23
-C220 (x7) + $15.69 premium (=$235.69), against the shares I’d buy back if 6/16 got called away.
6/30 - Week before P&D
-C215 (x6) + $4.59 premium (=$219.59), same
-C220 (x15) + $4.93 premium (=$224.93), expected not to be ITM but now it likely will.
-C300 (x25) +$0.41 premium. Not worried (yet)
7/21
-C240 (x15) + $2.34 premium (=$242.34), using the shares I bought back with proceeds from called away shares (plus any extra, or roll up and out, whichever is less cost)
-C245 (x4) + $2.04 premium (=$247.04), same
9/15
-C240 (x19) +$5.62 premium (=$245.62), same. This one is likely most dangerous. Will likely roll or BTC with -P money or delta hedge with calls.
I see once I factor in the premium it is not that terrible, unless 7/21 TSLA is at $300+.
Maybe I should buy a bunch of shares now using some margin in anticipation, or like Vova recommended, use the proceeds from the premium/sell some shares to buy calls. Maybe also CSP’s to raise cash to make up the difference in strikes until I undo the knot.
If I were to buy calls to Delta hedge, what date and strike make sense for this purpose, the DTE of the last one (9/15), for each set, or something else?
Also is it terrible practice selling short calls against the same lots of shares for 2-3 consecutive weeks laddering up (although then they are not technically covered calls…), with the intention of immediately buying back the shares for the coming week (possibly on a dip for bonus)?