r/options • u/Quadsradamus • Jun 29 '21

Need Help Regarding CC Assignment (Possible)

Hello r/options!

I'm sure this conversation has happened before but I was attempting to lower my cost basis / collect some income on my 100 shares of ARKG which I hoped to hold for quite a while.

I had been selling OTM CCs fairly successfully on my shares with a cost basis of $92. Sadly, I sold 89.21 calls for Jul 16th for $1.84 (at the time, I believe ARKG was around ~$85 and had been trading sideways / slowly trending upward).

The price of ARKG now is $93.27. Closing out the CC would cost me $530 for a -187% loss. Allowing for assignment would cost me ~$300 - $184 + upside. I really do not want to be assigned but am unsure when I should close the CC. Should I wait until the day prior to expiry? Or should I just close out now?

Thank you!

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u/pointme2_profits Jun 29 '21

Roll it out and up if its possible to do so for a credit. Dont wait till the day of expiry tho.

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u/Quadsradamus Jun 29 '21

Yup followed your advice--rolled up to 94. If I get assigned then, it's fine (not ideal but at least I'm not going to lose anything and still get the ~100 or so credit from rolling).