$Nasdaq Composite Index (.IXIC.US)$ let me put this out ther...
what would you do?
do you roll your option contracts?
here's my scenario and I have to make a decision today.
I bought soxl at 34 and change earlier this week and I bought it at 36 and change earlier this week.
when I bought the first lot at 34 and 1/8 I sold a 38 call that expires this Friday and I collected just under a dollar premium.
when I bought the second allotment at 36.06 I sold a 40 strike call for this Friday's expiration and collected about 75 cents.
I didn't expect a market melt up, I thought we would have had most certainly some profit taking and I was wrong.
so now I am faced with a decision the ETF is a little over 40 bucks as of this message clearly unless something happens adversely today I'm going to be losing the 38 strike and more than likely the 40.
so what would you do would you just take the victory lap and go I made money you never go broke by taking a profit or do you say this fell from $70 down to 23 and a half it's back to 40 and people are repositioning buying back all these tech stocks that they sold and look towards 3 to 6 months down the road because the basket of stocks this ETF should be mid fifties.
so do I buy the calls back and roll them for next Friday I can give myself on the 38 calls I can buy them back and roll to next Friday for a 40 strike for about the same cost of buying them back I can sell and collect the premium so I would give myself $2 more upside on the lower allotment and I can buy the 40s back and sell a 42 strike again for a slightly better premium that I would collect.
that's my question to you would you take the victory lap let them get called away and start over next Monday hoping for a pullback or would you buy them back looking for greener pastures higher prices this coming week and the following?
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35+ yrs in the trenches, raised tens of millions for start ups, syndicate ipo's, yrs on trading desk mkt maker.
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71879485 : testing 30
10baggerbamm OP 71879485 : I really have no idea what that means testing 30
71879485 10baggerbamm OP : pulling back to test 30 support
10baggerbamm OP 71879485 : while strange things can happen in the market resulting in very quick sell losses we've recently observed two weeks ago I don't believe we're going to see a 50% retracement bringing this basket back to $30. I think if we look at a moving average of $35.44 that is a far more realistic level of profit taking. certainly if Nvidia guides lower on August 28th I think $30 is realistic because if Blackwell is delayed they will have to revise Q4 down and q1 down and I think that's a 400 plus point decline in the NASDAQ pre-market that will accelerate throughout the day because everybody will be running for the door to lock in profits from this last rally
71879485 10baggerbamm OP : 10/share x 50000 = 500k loss if it pulls back to 30
71879485 10baggerbamm OP : selling ACCELERATED ...lol
10baggerbamm OP 71879485 : and if it goes to 45 and then 50 I can play both sides of it too.
your comment doesn't answer my initial what would you do question. which is let the stock/ETF soxl get called away from me because they're in the money since I sold calls or buy them back and roll them
71879485 10baggerbamm OP : good for u...only u know your TRUE PnL
10baggerbamm OP 71879485 : it's percent it's not dollars number one I posted the prices that I bought the positions at and I told you the strike price of the calls that I sold against the underlying position so it doesn't matter if it would be 100 shares and it's one contract or if it's 10,000 shares and it's 100 contracts.
71879485 10baggerbamm OP : down more than 1$/share....u lost 2.5% within 15 mins of this chat
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