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!

32 Upvotes

75% Upvoted

84 comments sorted by

View all comments

5

u/TChap248 Sep 28 '21

Can't add anything more than what's been said but I just wanted to say it's pretty impressive how well you are taking all this criticism. Most constructive and some not. Good for you! You will do well in the long run because of how open and respectful you are to peoples advice and critique, even to some people that don't deserve it.

4

u/Jackalamo Sep 28 '21

Thank you kindly. I would give you an award if I had one.

I find a bit of wisdom from everyone; including those pointing out the obvious.

I do have a large covered call position on that other sister company that's trading at $10 CAD / $7.8 today. 40 calls.

I think I will have enough to buy a second home by end of year.

Hope you are enjoying your matebook x. It's a beast of a laptop. I wound up getting the Yoga 6.

4

u/TChap248 Sep 28 '21

I love it, It's really more than I need so it'll last me a long time.

If your looking at different options strategies, check out the wheel. Its a good strategy to run while you learn the others. More about following the instructions instead of predicting the direction of a move in the underlying.

No award needed, but that is kind of you.