Hey guys, I currently have 20 ITM calls expiring this Friday, Jan 16. They are the Jan 16 '26 $10 calls.
I got them for a $2.25 premium. The stock is currently trading at $17 and looks like it's going to keep going up.
What should I do? Sell the calls? Exercise to keep the shares, or roll the calls out to a later date?
Some advice?
Posted by segreit
7 Comments
It depends what they’re on. You could always sell a portion, and exercise the other if you have capital or margin to buy. If you’re bullish, take the bullish stance and buy them and then you can always sell covered calls against them to pay off the margin while still getting more upside potential.
Remember, since you have more than one, you have “options.”
Cut at least half of them now. Theta will start to decay and you will lose some value between now and expiration assuming the stock doesn’t continue to go up.
whats the ticker?
I’m in a similar boat with 10 $13 calls that expire Friday. I’ll probably roll mine up and out to a date that I can get a credit at the money.
Take the Money, nothing is guaranteed, but highly speculative stock is even less,
Take this huge win, put the money in the bank, take a breath and look for you next play,
Do not try to milk every last penny out of this.
Take the big win, and walk away ..
Did you buy the calls for the purpose of obtaining the shares via exercise, or to go for profits on the options?
Exercising lets you put off paying taxes until later, benefiting compounding, and if you don’t already have a clean 1 year holding period, you can hold out for long term capital gains at a reduced cost basis.
If you do anything else, your scenario is almost equivalent to one where you have no existing position whatsoever and the decision-making would be too.