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That was my dilemma. As I wrote (and danced) about last week, my current methodology gave an outrageously strong buy signal Thursday (8/16) afternoon, and I piled into calls which expired the next day. Worked out nicely, but then I was left with the decision as to how to proceed- I had to sell the calls Friday (8/17), but I had just gotten a “buy” signal the day before, and usually they’re good for a number of days.

My two choices on Expiry Friday were:

1. Wait for “re-buy” signal to get long (basically, a pullback into the swing long), or

2. Roll the options forward- sell the August Calls and purchase Septembers with part of the proceeds, taking some chips off the table in the process

And now it seems I have the answer to my dilemma:

Monday didn’t pull back to 143, which is the level I had targeted for re-entry. It’s now clear that rolling into September Calls on Friday would have been the best choice, regardless of whether there was a pullback afterwards.

Getcha next time? Soon Amy, Soon.