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No. of Recommendations: 1
I have a diagonal call (GRMN) that is long 1/20/17 37.50 call and short 7/17/15 52.50 call. The stock is trading at $46.22

The short call is currently worth $0.08. It seems likely that it will expire worthless on July 17, about 6 weeks from now.

The usual strategy here seems to be to just let that expiration happen, before writing another call for income against the long call.

My question is: why or why not roll the short call early?

On one hand, it will cost me about $17 to buy back that call (8 bucks plus commission). I would not incur that expense if I just let it expire for full income.

On the other hand, only about 5% of the premium value remains compared to what I got paid. There is still six weeks remaining until expiration, and over that 6 weeks, there is only 8 bucks to be made at this point. In addition, in a diagonal call, there are a limited number of opportunities to sell a short call before the long call expires.

So the question: does it make sense to roll early in a case like this, to get some additional income, when most of the income has already been realized from the existing short call? Why wait until expiration?
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