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Strategies & Market Trends : Option Strategies

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chris714

the Zwei

To: the Zwei who wrote (1981)	10/12/2018 4:39:27 PM
From: Thehammer	2 Recommendations of 2591

Good question. I monitor time value very closely and that tends to dictate the timing. As a rule, I tend to watch the time value in relation to the dividend. The farther ITM, the more risk of early assignment especially if the dividend is greater than time value. In those cases ex date may matter. I guess that most of the time, I roll within the last week. You can always buy the option back or you can take the assignment. It may be economically viable to roll the position. The further ITM, the further you may have to roll it out. Sometimes you can roll down a strike or two as well. I use power options to monitor my positions. You can set alerts and do searches for different trade "options". When you do it by hand or even spreadsheet monitoring positions can be a pain. I am not plugging it, but just clarifying that makes it easier for me. That being said, if I really sour on a security, I will take the loss and close the position. I tend to have a long term perspective so that would be a fundamental perspective. Hope this helps. EDIT: I am short a few puts on SJM that expire next week. They are ITM by a couple of dollars and will post what I do.

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