A few months ago I put on a long term trade in Jan 2018. Sold put spreads and bought calls and as a basis reduction was selling short term calls. I sure didn’t see a 20 point 4 day move coming so the short calls are DITM with no rolling options available without going out to April (ouch).
It’s nicely profitable so:
1. Considering just taking the whole thing off and maybe waiting for a pullback to re-enter….possibly holding the 2019 bull put spreads to at least make a little if it continues up.
2. Roll short calls out to April and see what happens. Could still close the whole thing when it finally peaks. April roll to 175 would reduce short deltas a little so not a bad deal.
3. Anything I’m missing on how to handle this? If Janet raises in December we could really see this thing head higher.
Options Bistro 