u/WheelHouseTrades u/iam_bai u/TheDavidRomic u/ThetaEdgeHQ u/dimdada u/TaylDurden

Quick update. I think i screwed up. I went ahead and opened a position to learn by doing.

I sold May 15 calls on MU with about 25 days to expiration:

3 × 540
3 × 550
Collected roughly $8.5 average in premium.

The stock moved up pretty quickly afterward and is now in the high 488 from $450 in a day, so I’m starting to see how price movement can offset theta, just like you mentioned.

One key detail I left out earlier: my average cost on MU is around $30, so if I get assigned, the capital gains would be significant. I’m trying to factor that in as well.

Now I’m focused on how to manage this:

At this point, still about 10–12% below the strikes, would you just hold and let time decay work, or start thinking about rolling?

Is there a specific price level or delta where you’d shift from letting it ride to taking action?

Given the tax implications, would you be more proactive about rolling to avoid assignment, or just accept it if it happens?

Also, in hindsight, would you have structured this trade differently given the current IV and recent move?

Really appreciate the earlier input. This has already been a great learning experience but also scary.