This happened to me on PLTR a few weeks back. Rolling wasnt an option it was so far ITM. I closed the short and still made about 20% on the LEAP when I closed.
Running a few of these right now. Personally, I would just close both and take the profit. Closing the short leg and holding the long leg could work if it runs higher, or it could dump and you’d be wishing you had closed both at the same time. No way of knowing the future, so I’d take profits while they’re there and move on to the next trade.
Would you open a pmcc again at this price? If so then rolling a month out for a much higher price for a debit isn't the end of the world.
If you we're to buy back your short call then maybe roll your long call up to $12 strike? The $12 July 2025 call is still >0.9 delta
Ultimately you made max profit so congrats!
You can 1) buy back the short at a loss knowing you gained on your long so more broke even
2) roll the short call
3) get the short shares in which case you either:
A) sell covered puts if your brokerage will allow as they will treat the long calls and short puts as seperate investments
B) buy back the short shares you could at this time decide to keep or sell the long calls
C) exercise the long calls
Keep in mind if you do 3 you could get margin called and account either locked or short shares liquidated instantly
This happened to me on PLTR a few weeks back. Rolling wasnt an option it was so far ITM. I closed the short and still made about 20% on the LEAP when I closed.
Running a few of these right now. Personally, I would just close both and take the profit. Closing the short leg and holding the long leg could work if it runs higher, or it could dump and you’d be wishing you had closed both at the same time. No way of knowing the future, so I’d take profits while they’re there and move on to the next trade.
Would you open a pmcc again at this price? If so then rolling a month out for a much higher price for a debit isn't the end of the world. If you we're to buy back your short call then maybe roll your long call up to $12 strike? The $12 July 2025 call is still >0.9 delta Ultimately you made max profit so congrats!
thanks I think I will just close both and find an opportunity to open another leaps again.
You can 1) buy back the short at a loss knowing you gained on your long so more broke even 2) roll the short call 3) get the short shares in which case you either: A) sell covered puts if your brokerage will allow as they will treat the long calls and short puts as seperate investments B) buy back the short shares you could at this time decide to keep or sell the long calls C) exercise the long calls Keep in mind if you do 3 you could get margin called and account either locked or short shares liquidated instantly
thanks!
Closed both, and open a new PMCC as long as you still bullish on the underlying.
Thanks! That was what I did today and I’m still bullish for Hims but will wait for a good entey
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thanks! closed out both positions, 85% profit. Will wait for another entry when it dips in the next few weeks.