I am just looking for some feedback on this. I own 500 shares of Shopify (SHOP) on the TSE. I sold 5 covered calls on them, all to expire tomorrow. 2 of them @ 67 strike price and 3 of them @ 70 strike price. The stock is up 23.7% on teh day currently and @ 78.00 as I type this. Should I roll any of them? Should I just let them be taken from me? Or should I close them out? Any advice is appreciated! FYI, I bought 200 of them @ $65.00 and the other 300 @ $64.50 / share. I am wondering what the best course of action would be in this situation...!
Seeking Immediate Advice on Covered Call
- Thread starter arncap
- Start date
Lazy question so lazy answer: let them expire. You will lose some on microstructure if you roll.
too many other variables like tax situation, your view, etc.
Well i'll be damned...
It's not a bad situation to be in. One of those "why did I sell covered calls?" The stock is 23.6% the day before expiration! Not much I can do. The key thing here would be: Do I think the stock will keep rising or return to where it was? If the former, then maybe roll all or some of them. If the latter then maybe let them expire and take my profits.
You may be assigned if you don't do anything with the calls.
Meaning, you'd be forced to sell them at 67$ and 70$ respectively.
When you do this type of strategy, you usually have a plan: Why you do this, and what you'll do next. If you are asking the question it's because you didn't answer the second part.