I'm long the Nasdaq via TQQQ shares and have been selling options against it for a while. Usually when the premium drops (due to price drop or it's close to expiry with little value left) I buy it back and sell farther out calls with greater premium. I try to maintain an appreciation of this account by about 1% weekly (cumulative) but have obviously done much better recently due to the volatility and higher premium value. Firstly, I expect the Nasdaq to remain stable at worse, but predict it'll continue to appreciate until the New Year. My latest call option sold, was the $140 Nov 13th @ $8.30 (today's value $14.18) What would you suggest would be my best strategy going forward? A) Roll over my options to Dec 18th $140 calls @ $22.65 and pocket an extra $8 in premium. B) Roll it to the Jan 15th $155 calls @ $19.45 and pocket an extra $5 in premiums C) Roll it to the Jan 15th $165 calls @ $14.75 (roughly same price), but try and capture an extra $25 in stock appreciation D) Let the stock go at expiry and look for other opportunities that should gain me 1%
This last entry I paid $140. Over the past 2 months, I've bought and sold multiple times and collected premiums on calls. In all I've made $24 per share plus the likely $8 in premium from this last call sold. However, I think it is irrelevant on my purchase price (unless you truly believe the TQQQ is headed lower) because I will probably continue to buy the TQQQ in the coming months and looking to maximize profit potential. (Just curious what some think would be the best course of action).