#ShortCalls – Here’s how I’m handling my short calls that get in trouble. Well before they get in the money (usually as they reach about 3 times more than they sold for) I roll them out to put spreads.

Rolled SVXY JAN 19 2018 117.5 Calls to JUN 15 2018 120.0/105.0 Bull Put Spreads @ .10 credit

So now what?

1. We continue up and life is good (except for the next batch I have to roll)
2. We tank and I own SVXY. By using spreads it really doesn’t matter how low it goes. In fact, the lower the better. Wherever it ends up I’ll be getting the stock at a basis 12.25 above wherever it’s trading at the time. (sold the original call for 2.75 and the spread is 15 wide)