It would be nice to be able to close the contracts that are far out of the money, like the $77 and $76 contracts. The reason I don’t do so is because of the cost. 8 contracts would cost $45.20 to close even if the closing cost was only $0.05 per contract . That would be 13.6% of the premium received, and that’s too much to give up in my mind. Therefore it’s in my best interest to see if that contract can just be let to “expire worthless” which is a term music to the ears of option sellers. Another reason that it’s acceptable to have this view is because this strategy is not about “Trading Options” it’s about using them for income.

What about the $79 Short Put contract?

This one might be a contract I’d be willing to pay to close and roll because it’s close to the actual price. I have to think about this though, and not perform that move too early. Here’s why. What if the week progresses, and the price is closer to $80 than it is to $79? Then I’d end up paying two commissions to roll contracts because if I had moved early to close the $79 Short Put contracts, only to see a spike and have to pay to roll the upper end, I can look back and say I paid that commission cost for nothing. 

The next 7 days will be interesting to see what price point is the focal point, and also, I need to think about where to setup new contracts. Will I be conservative, or aggressive, or a mix of the two? If you’ve been following along, I think some of you probably know the answer to that question already.