No. of Recommendations: 4
Hi All,
Posting this here rather than the BRK board, since it is more topical. So back on 9-Aug-2023, I felt that GOOGL has been stagnating around and wasn't really going anywhere after the recent runnup, and decided to juice the returns a bit by selling some covered calls.
Specifically, I sold:
GOOGL 130 Nov-23 CALLS for $9.10/share (at the time, GOOGL was trading at 129.66, so the entire 9.10 was time value).
Fast forward to today, where GOOGL has increased to 138.13, and the current bid/ask for the option is at 12/12.15. I still think GOOGL isn't really growing like gang-busters right now, and wanted to roll the option up and out (the time value on my option has decreased to 3.95, but the intrinsic value is now 8.13).
What are the recommendations for rolling up and out (closing this set, openning another set). If I look at the Dec. CALLs, I can roll up to the 140. As far as I can tell, this would be buying back my CALLs at 12.1, for a net loss of (12.1-9.10 = 3/share) and then sell the Dec. 140's for 7.15, so my net would price where I break even goes to 144.15 (whereas it is currently 139.1).
So, what are the thoughts: should I wait longer, make the change now? Interested in working this out in public here.
Thanks, Gabriel
