This is a continuation of long-running trade that I kicked the can on. (See Post Below).
With price finishing the day wayyy below my 10 short put, I will find shares in my account next week via assignment. In anticipation of that occurring, I previously sold a February 21st 5.5 call and have a cost basis of 5.22. I'm fine with being called away at 5.50 should that occur, but will continue to reduce cost basis in the stock going forward if that doesn't happen.
Delta/theta: 62.98/.81 Extrinsic: .34.
Trade active
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Rolling the February 5.5 short call out to April as is and on approaching worthless for a .28 credit; cost basis of 4.94.
Trade active
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Pulled the 5.5 short call off for .02 before it goes no bid and sold the May 15th 3 call for .22 with a resulting cost basis of 4.74/share. Naturally, the short call is below my cost basis, which isn't ideal, but didn't want to roll all the way out to the next available expiry (currently August).
Trade active
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With the May 3 short call now monied and with only .13 of extrinsic left in it, rolled the May 3 out and up to the August 3.5 for .25 credit/contract, with a resulting cost basis of 4.49. I compared this to just rolling out to June "as is" for a .22 credit, which would increase my max profit potential by $22 versus increasing it by a half strike (.50). The credits being basically equal, I opted for going a little farther out in time than I usually would to bring in an "all extrinsic" credit.
Trade closed manually
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Out for 2.75, a 1.74 loser, on news of Senate passage of the Holding Foreign Companies Accountable Act, which could result in delisting of certain ADR's.
Assume TSLA tech will be stolen & given to NIO now that the gigafactory is up & running in China.
This baby could still fly up by sucking up TSLA marketcap.