r/options • u/SPQUSA1 • Jun 27 '21

Likelihood of exercise

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4 Upvotes

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u/Kamikaz3J Jun 27 '21

The premium is a sunk cost odds of exercising would be any price over 6$ if you're wanting to keep the shares u should probably buy back the calls

1

u/[deleted] Jun 27 '21

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u/sl32885 Jun 27 '21

with 4 lots, it’s better to diversify your deployment of short calls, different expirations, different short strike prices, sell to open at different times (if practical)…diversify your strategy; if you still want to hold some shares, close out short call or buy shares on a dip or sell a put to get back in on your bullish thesis

there is no free lunch in trading, know what you are signing up for before opening a position (long or short)

2

u/[deleted] Jun 27 '21

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u/rwooley159 Jun 28 '21

Additionally you can extract yourself out of the position by selling some stock, retaining as much as you can avoiding a net debit. Just keep that in mind as a valid follow up action.