So I write most of my options way out of the money (covered calls). I wrote BX for the Oct 18, 2024 $165. October 9th the stock was at $147. Their earning came in way above estimates... I know they are making money on their loans...They said that. I still feel that their commercial portfolio is of less value than they posted...Smoke and mirrors. So today the stock is at about $170...Up about 6.5%. My option may get called away tomorrow...If it drops after large movements today/tomorrow, I'll buy back. I like to place the option and forget it. I'll be spending hours tomorrow, to see if it's worthwhile to buy back...
Spend hours? Why buy it back? Just role it into next month and let it be. Roll it to November 1st 165 trading at $6.65, collect another 1 in premium credit.
I could roll...I don't like doing that. I usually let it get called away. I'll then regroup...Wait the 30/31 days and buy back if I like the company (example Apple). I just like to spend time on a company to reflect (over 30 days), to see if I have a real love for the company or it's just a passing fad...
I (many days) don't get up till about 10:30am Pacific Time...Half the market is done. Only about 3-4 days a year I get up early for the market (work). For me it's more passive income from "some" covered calls I write... I'll sleep in tomorrow and see where I'm at. Buy to close or walk away... I still made a good profit...It's just that one that gets away every few months!!
Whats wrong with rolling. It's not like you have to wait another 3 or 5 months ...just roll it out 1 week grab additional premium and maybe next Friday it's back under 165! When you sell a call how much premium are you looking to collect?