We have “rolled-up and in” on one of our SNOW covered calls as follows:
Buy to close: SNOW March 15th (monthly) 220.00 strike call
Sell to open: SNOW March 1st (weekly) 250.00 strike call
Debit: 14.30 – order has been filled
This is an expensive roll-up, but gives us some breathing room on one of our two (2) covered calls.We have entered into a far OTM call butterfly in SNOW. This is a very low cost and very small hedge against a big upside move. The spread is low probability of success but could slightly soften the cost of having to “buy back” an ITM covered call.
Buy to open: SNOW March 15th (monthly) 250.00 strike call (ratio of 1)
Sell to open: SNOW March 15th (monthly) 270.00 strike call (ratio of 2)
Buy to open: SNOW March 15th (monthly) 290.00 strike call (ratio of 1)
Debit: 2.10Â – order has been filled
Max risk = 2.10Â or $210.00 per spread
Max reward = 17.90Â or $1,790.00 per spread