also entered into FB calendar spreads
bought the Jan2021 160 calls at 75delta last week and sold the weekly 185calls against. rolled the short calls to Oct185 short calls for $1.00 credit. missed a roll to 187.50 for credit by a day. look to hold the short call till Friday to see where to roll to since its at the money now. next week is earnings so would like to target the 195/197 area for a short call. see where the stock is at that time.
again the objective is to generate weekly/biweekly premiums via the short calls and be able to participate in some upside.
the issue if you want to call it an issue with calendar spreads I have had is undershooting the short call, ie the stock blows thru it. in general I don't like rolling the short calls up and out for debits, will do it once but that's the only way to roll up I will just close the entire position and look for another trade.
since Im still on the job Im not behind the computer all day and with commissions being near zero ive been closing out all my short calls for a few pennies prior to opex if they are not in the money. that one time you get caught with a late day move, or tape bomb or tweet, or after hours move will remind you why you should close out.
in general I don't like selling a new short call if the "old" short call is only worth a few pennies, would like to have an up move first to juice the premiums a bit.
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