How to protect a CC in the money position?

[Global OptionsTrades]

Correct. I guess my example was a bit waaay in the money. So what if the stock went up only 20 bucks? Then there should be still a decent amount of extrinsic value left, what I wouldn't want to give right up.

Looking at GME an ATM call that was $25, is $34 when the stock goes up 20 bucks. So I would give up 20+25-34=11 bucks if I just buy back the calls and sell the stock. That is like 44% of the profits. Is there a way not to give up that much?

The answer ultimately depends on your view of the stock and your overall objective.

If you want to retain the stock, you could roll the position by buying back the ItM Call and selling another, at a higher strike, further out, capturing further gains over time etc but in your opening post, you said you were happy for the stock to be called away, and have been paid USD25 to do so, which suggests you should do nothing and await assignment.

 

[qlai]

What about buying 90DTE put to collar the stock? It’s unlikely for IV to crash on GME, so you should be able to close at break even or better once the shorter dated call expires?