beginners corner

Ask Alan #156 – Should I Roll My Expiring Out-Of-The-Money Weekly Option?

Alan answers a question posed by Edmond, who asks:

Alan,
I have been writing Weekly options on Ulta Beauty, Inc. (NASDAQ: ULTA). On November 12th, I sold the $315.00 November 16th expiration option (stock price was $308.50) and on Thursday prior to expiration Friday, the value on that option declined to 10% of the sale value and was deep out-of-the-money (stock price was $309.15). Should I buy-to-close the option and sell the next week’s option on Thursday or Friday or allow the option to expire worthless and write the new option the following Monday? How much time value would I lose if I waited until Monday to sell the new call option?
Thanks,
Edmond

———

It’s the 2nd Wednesday of the month. Time for another original episode of Ask Alan. AA#156, “Should I Roll My Expiring Out-Of-The-Money Weekly Option?”

If you want more “Ask Alan” videos, you can! Become a premium member today, and tune in to the educational power of the complete library!



More Video:


To enter your questions to “Ask Alan”, fill out the form on the contact page. Be sure to begin your message with “ASK ALAN”

About Alan Ellman

Alan Ellman loves options trading so much he has written four top selling books on the topic of selling covered calls, one about put-selling and a sixth book about long-term investing. Alan is a national speaker for The Money Show, The Stock Traders Expo and the American Association of Individual Investors. He also writes financial columns for both US and International publications along with his own award-winning blog.. He is a retired dentist, a personal fitness trainer, successful real estate investor, but he is known mostly for his practical and successful stock option strategies.

One Response to “Ask Alan #156 – Should I Roll My Expiring Out-Of-The-Money Weekly Option?”

  1. Alan Ellman March 13, 2019 6:27 pm #

    Premium members:

    This week’s 8-page report of top-performing ETFs and analysis of ALL Select Sector Components has been uploaded to your premium site. The report also lists Top-performing ETFs with Weekly options as well as the implied volatility of all eligible candidates.

    New members check out the video user guide located above the recent reports.

    For your convenience, here is the link to login to the premium site:

    https://www.thebluecollarinvestor.com/member/login.php

    NOT A PREMIUM MEMBER? Check out this link:

    https://www.thebluecollarinvestor.com/membership.shtml

    Alan and the BCI team

Leave a Reply

Optionally add an image (JPEG only)