Ok, well - even though you're getting on in years, I would suggest downloading ThinkOrSwim, log in (it's the same login as your Schwab login), and do these steps (I'll try.....).
Up on the top area, click on "Trade". Hopefully that gets you to the trading page. My TorS defaults to this page, but maybe that's because it's where I always go.
Below the buttons Monitor and Trade, there is an empty box. Click on it, and enter WMT.
Above the buttons Monitor and Trade there is an All Accounts area. Click on it, and select your Schwab account that contains the WMT short call options.
Now, way down at the bottom of the page you should see a list of WMT options that you have in this account. Right click on the WMT call option you'd like to buy back, and select Create Rolling Order.
have a look at what pops up. It should tell you that you can roll the option forward (buy back the Friday call, and sell a longer dated WMT call) either one week or one month to the same strike, and what you will pay or receive.
In that order you can modify the longer dated option (which you would sell) to a different maturity, and different strike, and see how that changes what you would pay or receive.
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Hmmm, eye balling it on Yahoo finance option quotes, it doesn't look like you'll be able to roll it forward and raise the strike price and receive much. Perhaps you could buy back the Friday $53.33, and sell a NEXT JAN $55, and the cost may be about zero. This is intuitively the equivalent of earning $1.67 in 7 months on $53.33, so something like a 3.2% return (but no need to pay capital gains taxes if you wind up selling the WMT due to call expiration).
Another option - maybe you prefer? You can buy back the Friday $53.33 call, and sell a Jan '26 $58.33 call, and probably make about $1.00 doing that. This would kick the tax can down the road 1.5 years, make you $1 per contract, and if eventually you're selling WMT due to being short this call, you're selling it for $58.33 rather than $53.33.
Lasty - It looks like you can buy a $53.33 this Fri WMT call, and sell the same strike $53.33 Jan '26 WMT call, and make $5.50 per contract. If you just want to push the tax can down the road, that's not a bad idea. However, it leaves you rooting for WMT to decline between now and Jan '26, cuz you're short the $53.33 calls.
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Well, the TorS software can show the options much better than me. I would say try the steps above if you want to go through it (I don't think it's that hard). If not, then up to you - good luck. It's also not a disaster to sell WMT for $53.33 this Friday, pay the tax, and then invest the remaining money into a super winner like Google or something like that.
The problem with selling covered calls (which you're now experiencing) is you nicely get some time premium, but your upside is capped. Capped upside isn't very fun.
I'm in a similar situation having sold covered calls on 80% of my SIMO position, while SIMO (unexpecedly) continues to move higher and higher. It's a bummer! |
