u/Jenny001a

BULL jumped significantly after hours, and my $8 short call(8/28) is now deep ITM. I have corresponding $5, $7.5 and $10 LEAPS calls as the long leg.

I'm considering two options:

1. Take the realized loss on the $8 short call and roll it out/up to the $10 call expiring 12/18, giving the LEAPS more room to appreciate if BULL continues higher.
2. Roll the $8 short call up to the $9 call expiring 10/2 for a debit, which would also give the LEAPS some additional upside exposure while keeping the expiration much closer.

Alternatively, would it make more sense to just close both the LEAPS and the short call and take the overall P/L?

Which approach would you prefer for managing a PMCC when the short call suddenly becomes deep ITM after a big after-hours move?

Any input is greatly appreciated.

My covered calls expire tomorrow. Today, and again in overnight trading, the underlying stocks dropped significantly.

Would it be better to sell new covered calls tomorrow after I close the current ones, or wait until next week for a possible rebound? I’m concerned that the market could fall even further next week.

Do you usually wait for a green day before selling covered calls, or do you sell them after you close the current ones?

Thank you very much.