Hey all,
So last September I opened a large number of BB $7 calls expiring Jan 2027. Since the stock fell a bit and traded pretty flat for the first third of the year, I started to sell off some of my calls, and later converted the remaining calls into a bull call spread by selling short the $10 calls with the same expiry. As you may know, BB has been on a bit of a run. This has resulted in a decent profit but I'm starting to be worried that it will run past $10, especially with 8 months of time left on the spread. At the moment the spread is worth \~$1.10. This isn't bad, but it means locking up capital until expiry to realise the max profit or waiting to see if it goes deep ITM enough to realise near max profit. What I'm worried about is if it continues to run and I severely limited the profit I could have had.
Buying back the short calls would be too pricey at the moment (they are worth about $40k). I'm thinking of buying some closer dated OTM calls (like Sep $13 for instance) in case this thing really starts to run even more. Then even if BB falls moderately by Sep instead, the original bull call spread I had set up should have widened up enough by September to get some more of that profit, or I could buy back the short 10s then. But then this way I'm paying more due to the increased IV. Would it make sense to instead maybe roll the short 10s from my original spread into short 12s? Or open a whole other bull call spread say 13-15 for the same expiry (Jan '27)? I am kind of kicking myself, it could certainly be worse but I don't want to feel even worse if it runs to $20 by January.