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REDDIT

How can I lock in profits on a short put as the stock approaches the strike price?

B
Apr 30, 2025 · 22:23

I sold a put option on MSFT with a $435 strike, expiring in August. The stock is now about to cross $435, and I’m unsure whether it will stay above that level by expiration.

Once MSFT trades above $435, the put will still have some extrinsic value left. Is there a way for me to extract that value now — so that even if MSFT drops below $435 before August, I’ll have already locked in my profit?

What strategies do you use in this situation — rolling, closing early, something else? I’d love to hear how others manage this kind of scenario.