I've been selling CSP on SOFI since last year at a 25 strike price and made some decent premium. Originally, I was fine with potentially being assigned at $25, but now that the news has come out that SOFI has mis-stated their financials I'm really doubtful. It's now dropped to $15 and I'm going to be assigned in a few weeks. What's the best move from here for SOFI? Should I just accept it? The covered calls are just pennies right now. OR should I keep rolling and waiting this out?
Managing SOFI cash secured puts?
byu/PowerExtension inoptions
Posted by PowerExtension
2 Comments
I would just keep rolling. Keep the same strike price, but push the date out further.
Accepting assignment is a 40% loss before premiums (gonna assume closer to 35-37%). It’ll be a lot harder collecting covered calls to recoup the loss. Might as well keep rolling and see if you can cover most of your basis back.
Market might also rip later in the year who knows.
I thought you didn’t mind owning? That’s the type of risk the option sellers where insuring against. If your thesis changed I would change the trading strategy accordingly 🙂