My morning routine is to review:
- Executed orders.
- Any uncovered positions created by executions and create orders to re-cover them.
- Covered calls by delta (sorted descending); decide whether to roll or hold.
- On Thursdays, cancel GTC buy-to-close orders if the covered call is likely to expire worthless.
Step 1 notes — executed orders:
- I sometimes get a flood of morning executions from GTC buy-to-close orders. Capture all fills and note which ones could create uncovered positions.
Step 2 notes — re-cover uncovered positions:
- When buy-to-close orders fill, they can leave positions uncovered (since I trade covered calls), so I immediately create orders to re-cover them.
- After a market dip, be cautious selling new calls; waiting for signs of recovery can help sell at better prices and avoid capping a rebound too low.
Step 3 notes — review by delta and decide roll/hold:
- Sorting covered calls by delta in descending order surfaces positions with large upward moves in the underlying.
- With weekly covered calls, I review this daily to decide whether to let options expire and sell shares, or to roll.
Step 4 notes — Thursday GTC cleanup:
- Maximum profit from covered calls is realized when they expire worthless and I keep the full premium.
- There is still time to roll on expiration day (Friday); however, sudden moves can turn late rolls into losses.
- I need better rules for deciding whether executing buy-to-close on low-delta options Thursday is optimal.
sort by today’s gain; loose shares sort by delta; options check cash balance; reallocate