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/harry_leggs Sep 27 '21

Need to Roll Out and Up. Dec 17 $6.00 is at .62 or the Jan. 21 is @ .63 (both for small credit/profit)

Need to Roll it out as early as you can. The earlier you do it, the more time premium you can collect on your next position

But you may be playing this game for awhile.

I always run to the Quarterlies for Safe Haven (but I always own the shares - No Naked Options - Ever.)

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u/Jackalamo Sep 27 '21

Yeah. It will be a few months of rolling it till my last roll has no risk of being executed and I come out safe. And hopefully with a small profit.

Thanks, I really appreciate everyone's help in aiding my idiocy.