Hey Team, for a couple years I was doing great selling daily covered calls (my only options experience) against various longs in my account. I uncharacteristically got distracted around tariff/Liberation Day and made some emotional bets on my SPY that got a little away from me so I was forced to move away from daily to longer dates thinking things would pivot. Had a very unexpected injury/health crisis/long recovery, and I just sloppily moved longer and longer on my dates with little thought and we all know how the market has gone. I was ready to close this out and move on at the initial drop point of Iran conflict BUT I DIDN’T and the recent to-the-moon recovery and new highs have chomped me even more. I’ve just been ignoring this or staring blindly for a long time. Thanks for looking and any input/advice/WTF-man/or whatever you may offer.
Some other caveats to note:
- I looked back at SPY premiums collected over time and what I did with it (reinvested) – I am at a gain over what I am losing on this trade, so it kind of helps me on that mental note
- In addition to bullet above, this isn’t the only $ I have in account, so I can close this trade out and call it a day… or I can cover a longer term debit rollout to get my strike back up to something closer to current trading
- Mainly just wondering if others would close this out and get back into the daily grind of selling covered calls? Rollout to something like year-end with (?) strike? Let it get called away and buy a boat? Something else?
+———————————————————————————————–+
| Symbol / Position | Price | Position Value | Day Change | Day P/L | Total P/L |
+———————————————————————————————–+
| SPY | $736.535 | $886,103.89 | +$4.955 | +$5,961.21| +$265,759.78 |
| STATE STREET SPDR S&P 500 ETF UNITS 1,203.071 |
+———————————————————————————————–+
| SPY 605 Call (Jun-18-2026)| $136.59 | -$163,908.00 | +$4.58 | -$5,496.00| -$94,772.15 |
| Contracts: -12 -3.47% |
+———————————————————————————————–+
Political Screw-Up + Bad Timing + Hospital Stay = Covered Call Wow
byu/GhostOfCyndiLauper inoptions
Posted by GhostOfCyndiLauper
1 Comment
The stock gain dwarfs the call loss so the overall position is still solidly profitable, the covered call just capped some upside you wish you had kept. Closing the short call now crystallizes the $94k loss but frees you to sell calls at current strikes going forward, rolling to year end at a higher strike reduces the immediate hit but ties up the position for months in exchange for maybe $15 to $20 in additional premium per share. If you want to get back to the daily rhythm that was working, taking the loss and resetting is cleaner than managing a drag position for 7 more months.