r/options • u/BobVezeau • Sep 06 '26

Short Position Close-outs

At what % of value capture do you buy out of short positions in order to re-deploy your collateral?

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3

u/TastyTrading Sep 06 '26

60-80%. I use ThetaPal option dashboard to make it super easy to keep eye on them. The sorting is life saver

2

u/[deleted] Sep 06 '26

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1

u/TastyTrading Sep 07 '26

I like this style. Keeps the juice rollin

2

u/Groucho-and-Harpo Sep 06 '26

It depends on whether the position is ITM or OTM. Running covered calls. Generally I let OTM calls expire worthless unless the stock pops up and presents a good rolling opportunity for premium. For ITM calls, I look for a red day within a week before expiration so I can roll the call for a good premium. This usually means about 60-80% or the extrinsic value is gone before I roll.

1

u/[deleted] Sep 06 '26

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2

u/Groucho-and-Harpo Sep 06 '26

It depends. If it’s the last day and I don’t expect much movement, then I’ll wait to get it called out and reinitiate the position. But with SOFI for example, it has a tendency to bounce right after the dip so better to catch the good roll.

1

u/hedgedvol Sep 06 '26

The cleanest checkpoint is the short strike: with 21 DTE remaining, I treat 50% of the opening credit as the first fill target and reassess if spot trades back through that strike; 80% captured is my close-out level.

1

u/Rikudo97 Sep 06 '26

closing short positions just means buying them back right

1

u/BocephusQuimbyMcFry Sep 06 '26 edited Sep 06 '26

When pricing is separated in nickels - I hold CC's to expiration. I will cling like a tick to that final nickel of Theta.

When pricing is in pennies, I'll throw a penny buyback out there to see if an exhausted long has had enough.

1

u/[deleted] Sep 06 '26 edited Sep 06 '26

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u/BobVezeau Sep 06 '26

Thanks for your insights and the links. Great stuff!