Howdy options forum, I have a hypothetical question. Put on an SPY underlying, OTM Call Diagonal (using prices from a couple minutes ago): BUY +11 SPY Jan12 122 Calls @ 3.75 SELL -8 SPY Dec11 119 Calls @ 3.64 This spread prefers price to stay in the range, though also benefits from IV increase if we revisit 45+ VIX. That said, I've never understood what you would do if some of your short options get called away if they go ITM? For example, SPY right now is exactly at 120. Imagine we have a Christmas rally and shoot up to 130 next week. At that point, 4 of my short 119 Calls get called away. Also assume I've been delta hedging a bit on the upside so I'd prefer to keep the original spread all the way through to expiration. What would you do in this spot? I was thinking maybe you could sell options to match the delta of the original position (and that would make your risk look the same) but not sure if that makes sense. I've also read on this forum that getting options called away early is a good thing....how is that possible? They lose whatever time value is remaining, sure, but if those options are part of a spread doesn't that mess up your overall position? Thanks and Happy Holidays!