What do you guys do when there is a sudden movement and your stock goes in the money? Which is the best option to save the naked option /exit with minimum loss?
Square off and roll out to next month with the same strike?
Square off and roll out to next month with a slightly out of money strike?
Convert into a strangle/straddle to get more premium and wait it out?
Buy the stock and convert into a covered call?
Buy a deep itm option and convert to a spread
I have done all with varying results, but want to know which is your go to adjustment when your naked call is tested. Please post if you follow some thing else as well.
If all these 5 options do actually repair your endangered naked call?
Since you have tried all these options , will you please let me know your observations.