04-16-2020, 07:53 AM
(04-15-2020, 08:37 PM)john Wrote: On 4/9 I sold a CALL on IRM for 7/17 expiration 35 strike for .58 The price of IRM has dropped since then and I could buy my CALL back for .20 leaving ~ $37 profit.
How do you decide when to buy an option back vrs letting it ride?
Depends some if I see a better opportunity. You are already way out on the expiration date so if you want to keep the long shares than you may wish to let it ride. I wouldn't roll it forward now as that opportunity will remain even if IRM rises some. I have rolled calls closer to the money for more income if I expect the stock to drop further. I'm not suggesting that is what you should do now. Like Mike says it's a black art.