I don't know if I want to expend another $150.
$150 is just over 1% of the whole position; try not to nickle and dime yourself out of a profit. I've done it plenty of times, trying to get an extra 1/8th on an option price, only to not get it, and have the option take off without me. Consider how that $150 changes your position, and the possible outcomes. If you think you'd be in a better position, and you're bullish on the stock, put your money on the table. Maybe it'll work out, and maybe it won't, but without taking the risk you can't get the reward.
Maybe I'll sell the Jan 55 and take in $137??
You could, but why? The $137 is nothing, compared to the $11k+ you've got in the position, and if SBUX does recover past $55, you'd be forced to sell at a slight loss. With the spread, you'd be in almost the same position as you are now if SBUX doesn't recover, but much better off if it does.
I notice the highest Nov or Dec calls listed are 42. Maybe a Nov or Dec 55 will come available this week, or doesn't it work like that?
Not likely. Option strikes are made available at the whim of the CBOE market makers, and they only make strikes available when there's a chance the stock will be near that price. SBUX will have to get up into the low 50's before Nov or Dec 55 calls will start trading.
Doug. |
