Yesterday was the Federal Reserve meeting and they decided to keeps rate steady which means I had a tough decision to make. Buy back my calls now at 60% return or let them sit. Normally, I would close and roll calls once they hit 80% profit but because the Fed didn’t cut, the next major news event will be the new administration’s tariff play.
I decided to put close orders in and see what happens. The $240, $241, and $242 calls closed while the $243 and $244 calls remained opened. I actually liked where this ended up because my risk of $243 and $244 calls being assigned is fairly low unless something dramatic happens in the market.
I now have the ability to sell more calls into the future but I’m going to wait till next week unless something major happens.
The market has been highly volatile and there was a theoretical chance that the new administration’s “spending freeze” executive order could have crashed the stock market because it created quite a bit of chaos. The executive order has now been rescinded but I expect more volatility moving forward and this strategy may work out well for me in the short term.
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How are you invested in this market? Liking or hating the volatility? Let me know in the comments below.
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