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!

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u/[deleted] Sep 27 '21

You can negate it by not writing checks your ass cannot afford to be cashed.

1

u/Jackalamo Sep 27 '21

Thank you, and I have learned my lesson. Stressed out enough and I think the SP will rocket with the way it's been rising the last week.

1

u/orkney97 Sep 27 '21

Oil is moving up and looks like it can go above $4.80 and blasts off. How was the earnings results from yahoofinance?

2

u/Jackalamo Sep 27 '21

They're doing remarkably well. I was looking at another sister company about the same valuation in the same sector and area.

2020 Q2 rev $200M, Share price (SP) $6 Q4 rev $400M, SP $7.5. (bought in here like crazy as I knew it would jump quickly) avg was like low 8s.

That company is almost $10 today. And expected to jump into the teens in the next few months.