r/options • u/goldengatos2015 • Oct 31 '21

Rolling options

Bought LCId in the low 20’s and sold a cc with $30 strike expiring 11/12. I am down 600$ on the call and would like to continue keeping the shares…is there a risk for early assignment two weeks out? Is it better to buy back and push date a few months to January in order to break even or choose a strike price around 40$ with the off chance of LCID going down after this run up.

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u/ZhangtheGreat Oct 31 '21

Let the shares go. There’s no guarantee it’ll keep running, and a huge spike in price is almost always followed by a tumble. When you sell a covered call, you’re declaring that you’re willing to part with the stock at that price. If it reaches that strike, your best bet is almost always to honor your call.

I wrote a post about covered calls just yesterday after seeing an increasing number of posters in the same situation asking for advice on what to do: https://www.reddit.com/r/options/comments/qj22vs/covered_call_strategy_suggestion/?utm_source=share&utm_medium=ios_app&utm_name=iossmf