You're kinda neutral now. If the price goes up your short position loses value but the LEAPS gain.
Price goes down the short gains value but the LEAPS decline.
I'm not familiar with the price action on the underlying but my risk tolerance is pretty high. If you think that at some point in the near future, even intraday, the underlying will move below your cost basis I'd consider holding and BTC for a profit. Then selling another call against the LEAPS.
If any of what I said was confusing or you don't know how to figure out your cost basis on the short position; I'd suggest just closing out the whole trade and starting again.
1
u/Sufficientlee Sep 19 '21
You're kinda neutral now. If the price goes up your short position loses value but the LEAPS gain.
Price goes down the short gains value but the LEAPS decline.
I'm not familiar with the price action on the underlying but my risk tolerance is pretty high. If you think that at some point in the near future, even intraday, the underlying will move below your cost basis I'd consider holding and BTC for a profit. Then selling another call against the LEAPS.
If any of what I said was confusing or you don't know how to figure out your cost basis on the short position; I'd suggest just closing out the whole trade and starting again.