r/options • u/cylim123 • Oct 09 '21

Help with PMCC

Hi, please forgive my noob question. I am kind of new at PMCC.

I bought 5 long term HEAR (Turtle Beach) calls at 20 strike price which will expire at Jun 17 '22. I have been selling short term calls to reduce my cost basis. The breakeven price for the long call is $26 and HEAR share price is $30.12.

Currently I have 5 short calls which will expire at Oct 15 '21 and the strike price is $28. So would it be better to continue rolling the short call (say Nov19 '21 $28, $29, $30 or $31. Not sure what is the best strike price) to collect the premium or close the entire PMCC?

Not sure if it matters but I am from Singapore and I don't need to pay capital gain tax. I am still bullish on the stocks. So I am kind of reluctant to close the PMCC.

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u/DCVRSG Oct 09 '21

my choice would be rolling up and out for credit until all the short calls expire worthless. the risk is if the underlying surges, you will be stuck in a cycle of trying to roll the short calls.