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Posted

I have a bear call spread on Nvdia that expires today. Typically I've rolled the spread for a credit at 21 DTE or later, but I can't do that as the roll has always resulted in a large net debit due to the extreme  price move. Worst cast scenario I buy the spread back before expiration near the max loss aka width of the spread.

The bid/ask on this spread is extremely wide with the ask being around being nearly $9 on a $5 spread. I really don't want to buy back a $5 spread for $ 7-9.

I don't see how I can allow the options to expire together without having the short call assigned. 

Any help would be appreciated on how to best manage this situation.

 

Posted
49 minutes ago, KingTide said:

I have a bear call spread on Nvdia that expires today. Typically I've rolled the spread for a credit at 21 DTE or later, but I can't do that as the roll has always resulted in a large net debit due to the extreme  price move. Worst cast scenario I buy the spread back before expiration near the max loss aka width of the spread.

The bid/ask on this spread is extremely wide with the ask being around being nearly $9 on a $5 spread. I really don't want to buy back a $5 spread for $ 7-9.

I don't see how I can allow the options to expire together without having the short call assigned. 

Any help would be appreciated on how to best manage this situation.

 

Let it expire and you will only have the max loss of the width minus credit.   You won't be able to close it without greasing the palms of the market makers. I don't know who your broker is, some of them charge a lot to let it go to assignment or some may even force you to close even though the net result will be zero shares, like Tradier, so you might want to call them depending on that.

  • Thanks 1
Posted
1 hour ago, KingTide said:

I have a bear call spread on Nvdia that expires today. Typically I've rolled the spread for a credit at 21 DTE or later, but I can't do that as the roll has always resulted in a large net debit due to the extreme  price move. Worst cast scenario I buy the spread back before expiration near the max loss aka width of the spread.

The bid/ask on this spread is extremely wide with the ask being around being nearly $9 on a $5 spread. I really don't want to buy back a $5 spread for $ 7-9.

I don't see how I can allow the options to expire together without having the short call assigned. 

Any help would be appreciated on how to best manage this situation.

 

Whatever you do - do not roll. NVDA earnings are next week and in he current market state a 10% rise is the least one might expect. I wouldnt be too worried on assignment - just sell in premarket.

  • Like 2

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