Value Microcaps Zip Code Changers

[nsomniyak]

If I read you right, you are asking me what if I get assigned on the in-the-money calls I wrote before they expire (the May 11s).

OK by me.

That puts me short at 11. If I were uncomfortable with the short (not sure yet) I could either buy to cover (doing so at less than 11.75 would mean a small profit for me), buy calls to hedge the short position (effective, but would pay a time premium on the calls), or write an in-the-money put. The latter would generate another nice premium and would cover the short much like a covered call would do for a long position. That would not protect against an absolute runaway to the upside, but could protect me against a couple points, or 15-20%, of movement to the upside.