Yesterday I sold 240 CC and again 245 CC.
Looks like 240 is already in danger. I don't get much gain by rolling to next week - just $5 (may $7.5).
@adiggs would you roll today ?
Also I bought back sold 190 puts (limit orders executed) - should I sell puts for this week again. What strike ? 215 gets me 25 cents.
ps : The way I got caught really badly in DITM puts and got assigned was something like this. The SP ran up and I rolled up the put. Next day SP tanked ("Twitter"). I still haven't recovered from those assigned puts.
The ps - that's why I don't roll closer to the money at the same expiration any more. I used to do that as well, and most of the time I'd pick up a bit extra. Maybe 1/3rd more over what i started with. It was never a lot, but it also wasn't trivial.
The problem was that too often, which might only mean 4/year and was actually more frequent than that, the share price would reverse right back into me and whether I ended up goign ITM or not, I need to sweat the position. The emotional turmoil wasn't worth the incremental gain.
What I WILL do is take the desirable early close, and then re-open a new position (even with the same expiration) when that reversal happens. Typically that is the next day at the soonest, but on occasion its the same day (sharp enough reversal after I close my position happens on the day of close). Also doesn't happen often (maybe a couple times in a quarter?), but it gets me a lot better strike than rolling towards the share price.
My 240s are for next week. Looks like the government shutdown stuff is probably behind us - the rest of the actors have indicated support. The remaining wild card doesn't look like it would be immediately market moving (the folks that booted McCarthy decide to boot Johnson, for the same reasons they booted McCarthy).
I'm less thrilled with them today than I was yesterday.
The 240cc's - I would like to get at least 250 for them if I'm letting them go. Using the end of day option chain that'll take a 2 week roll and generate a .50 credit. The 1 week roll only gets me to 245.
I'd say I have a pretty strong bias towards rolling tomorrow. I really dislike rolling with that much time to expiration, but part of the escape hatch on these was that I'd roll out to 250 if they got pressed, and if I sell them off at that point, then the roll will have earned me an extra $10 for the 2 weeks. If the share price comes back down then I'll have earned a week of income over a period of 2-4 weeks, and that's fine. Opening the position in the first place put me into position to earn a bit if the share price headed back down after those few up days that closed out the puts for 90%+.
The biggest "problem" I have right now is that I've such a high % cash, my positive delta is effectively 0. If we go on one of Tesla's epic tears right now, I'm well positioned to miss it. That opportunity cost is something I'm watching carefully - I don't yet have a plan for what I'm going to do about it though.
As for selling new puts - I'm also looking for an entry. With the big move up today, today is not a good day for entering puts for me. If for some reason I strongly believed that today's closing price was a short term low price (and I don't), then I might sell puts. Instead I am continuing to wait for a Put entry.
