The run-up in the market has me trying to figure out my best move to capture the most gain on several covered calls that are now fairly deep in the money. One example: COST (Costco). Bought 400 shares at $46.71 in June. Currently trading at $56.75.
I should be delighted, as I wrote 2 July $47.50 calls @ $1.30 which expired. Also wrote 2 Oct. $50 calls at $2.05 then another 2 Oct $52.50 calls at $1.05 after the July calls expired. Since have received an .18 dividend for a total of $933 on the $18,684 initial investment.
Now, at $56.75, I have a couple 'options'...on the assumption that the stock will continue it's bullish trend:
A. Let the options be called for nice $660 and $1,158 gains, knowing that I'm leaving about $2,200 of upside on the table.
B. Roll the Oct $50 and $52.50 call options to perhaps April $60 calls at a cost of about $900, protecting the upside potential.
C. Something else?
What would you do?
thanks.


