Forum
Our Call is set to expire. Now What?
If you have been following along with out $1000 Mondays, then you know we picked WW for a PUT option and got assigned. This week we wanted to show you how you could continue to make money with a CALL option. We are now at the end of the week and there is a good chance that option will expire. As of this writing WW is trading at $7.85 and our strike is set at $9.00. What should we do?
We let the CALL expire. It is simple, and we will get the most money out of it.
The bigger question is what to do next week. There are few things we could do. We could do some strategic trades to get out of owning WW. This would involve doing several trades, some in the near term and some in the long term. It can't get messy if you don't know what you are doing.
But what we like to do is setup a stock sale, over the weekend, that will go into action first thing Monday morning. The sale will have a limit set for $8.50 (our purchase price). There is the potential that the stock will see some dramatic upward movement coming off of the weekend. If this happens, then our stock sale will trigger, and we will recoup our costs. If the stock does not sale, by the time we are ready to make a trade, then we can cancel that request and do another CALL on the stock.
