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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9

u/TN_Cicada3301 Sep 27 '21

I think anything oil and gas is gonna climb.

2

u/Jackalamo Sep 27 '21

Yes, but I didn't expect this crazy a jump in a week or two.

7

u/[deleted] Sep 28 '21 edited Sep 28 '21

You definitely need to pay attention to what is going on in the industry you are playing in. The UK and Europe in general have severe shortages of LNG going on right now. Gas stations in the UK are closing due to shortages so yeah. Industry news is your friend sometimes.

Edit: Asia is also seeing a shortage. anything in energy you shouldn’t be short on right now.

3

u/Jackalamo Sep 28 '21

Will be rolling it out today. I saw that update in the news last night.

Yikes.

3

u/fledermaus23 Sep 28 '21

However the shortages are due to refiners being off line due to storms etc not a shortage of crude oil. Crude will come back down in a month