Closing a profitable long call or turning it into a bull spread?

Discussion in 'Options' started by john7722, Aug 25, 2021.

  1. john7722

    john7722

    Hello , I was wondering if you ever turn a profitable long call into a bull spread or just close the trade and take the profit.

    I am long 1 OKTA jan20 '23 210 call . I bought it for $57 and now it is $79.
    Does it make sense to turn it into a bull spread or calendar spread , maybe by selling jan20' 23 350 call?

    Thank you .
     
  2. traider

    traider

    Depends on your outlook for the various greeks. For example if volatility is high and you are still slightly bullish, sell the spread
     
  3. john7722

    john7722

    Did you mean sell a call to create a spread? Sorry I am really new to options.
    I am slightly bullish but I think it will trade between 220-280 for the next 6 month .
     
  4. traider

    traider

    Yes sell the call to create the spread
    try to understand the greeks and that will guide your decision
    But in a crazy bull market like we have now it is almost always better to leave calls for as long as you can before doing some sort of adjustment