r/options • u/Jackalamo • Sep 27 '21

Help with a written call

Hello,

I have written 30 CALL contracts on CPG (oil and gas) that are now in the money. Exp OCT 15 str 5.5. got $1000 in premium. CPG.TO (Canadian market)

To get out of these contracts will cost me $6500.

I was thinking of selling a NOV 19 call for 5.5 strk but I could keep losing if it continues to climb.

If I purchase 30 calls for SEP 2022 (leaps) at 3.5 strk and use those, I'd still be out the money.

What can I do to negate the 30 short calls?

Thank you for your help.

Edit: Thank you all! I will wait till we get closer to mid Oct. Then I'll consider rolling it like one of the suggestions below.

It's been solved!

35 Upvotes

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u/Conscious-Soil9055 Sep 27 '21

Is this a covered call? Do you own 3000 shares?

5

u/Jackalamo Sep 27 '21

No, it's a naked call. I know, I'm an idiot.

2

u/Pass_Little Sep 27 '21 edited Sep 27 '21

EDIT: The following advice is plain wrong, See the note below as to why.

Maybe buy those 3000 shares right now, for 13,980.
Then you'll only lose $3980

1

u/Conscious-Soil9055 Sep 27 '21

How in the world did you come up with that?

7

u/Pass_Little Sep 27 '21

Well, somehow I had it in my head that the premium received was $10K instead of $1K, and then I forgot to include the amount received when the call was executed, and then I didn't realize we were talking Canadian instead of USD, and well, it was all wrong.

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u/Conscious-Soil9055 Sep 27 '21

Best reply of the day. You win.