ncroadrunr 8:10 am on Wednesday, March 18, 2020

I am looking for advice.I…

I am looking for advice.I bought UVXY at $25 and sold call expiring Friday for $36, now I want to capture more of this windfall. I thought of buying higher call making a spread to free the stock. Problem is prices are too high for purchase. I thought of rolling out and up short call to Sept but the long calls are quite expensive – $30.

330nick 8:21 am on Wednesday, March 18, 2020

The trade is over IMHO. If I were in the trade and margin requirements are not an issue, I would consider selling the shares, rolling out the short call to, I dunno, Jan2022 70 call for a small credit, and sell some weekly puts until we go back into contango.
- Option Iceman 8:29 am on Wednesday, March 18, 2020
  
  I agree with Nick. Take the cash and look elsewhere
Lesserweavil 8:30 am on Wednesday, March 18, 2020

This is my thought – I’ve been in the same boat a few times. I current have some WDFC that’s done well for me, and is currently covered with $195 Apr-17-2020 calls. Stock popped up over 200 today. I’ve held it for… a long time, so am already at about $185% of my initial investment. I still have a generally positive outlook for WDFC, long term (who doesn’t need their products now again?), and wouldn’t mind continuing to hold the stock. I also am ok taking the win and looking for a different opportunity, rather than trying to chase this one further.

Right now, I think any win I can realize is good. There will be other opportunities down the road. Having some cash available is good. I’m going to let this sit, and if it gets assigned, I’m ok. My gut is telling me things may also come back down a little bit between now and Apr 17. I might be better served by looking to protect my gain with puts and a collar.
Jeff 9:59 am on Wednesday, March 18, 2020

Agree the trade is over. If you wanted to keep ahead of the short call, you needed to be rolling it when it crossed ATM. Now it is too deep ITM to roll effectively.