No, I mean close and take loss on the short 85 call. Roll up and sell the 90 call to form a new CC. The underlying will get called away at 90 at expiration. Forget the separate spread position for now. Everything is covered here: Long 2000 CVX stock Short 20 CVX Jul 90 call Realized loss on Short 20 CVX Jul 85 call (closed position)
I know precisely what you mean . You have to understand that buying back the 85 call and then selling the 90 call is the same as buying a bull call spread. You then end up with the long stock and the short 90 call which is the same (synthetically) as a naked short put. db
With CVX up a buck twenty this AM I'm a bit curious to know if/what you did. Believe me I "know" your pain HAD you gone ahead and closed out the existing CC yesterday or day before THEN did a new CC (today)you'd be feeling better. When you are very bullish on a stock doing the roll in stages can make sense as long as you understand (and are willing to take) the risks as DB stated.
I bit the bullet... bought back the short 85 call at a loss and sold 90 call to open. $12k realized loss today. Ouch! CVX better behave between now and expiration...