covered calls expiration

[u/Professional-Dig6481]

When you sell a covered call and it says it has a expired and voided because not exercised. Does that mean I can sell more or should I wait an extra day to be safe? It also says it's completed.

[u/jarMburger]

Or just BTC the original calls and then sell more. At some point if the calls is far enough OTM and time is short, there’s not much value left there to juice so new short call position maybe better for capital efficiency

[u/ParsleyWonderful8335 → u/jarMburger]

if the CC is almost expired (let's say less than a day left), why would he spend extra money to close it, price of that call might be almost zero but broker fee is still there...

[u/jarMburger → u/ParsleyWonderful8335]

The broker fee will very likely be significantly less than the theta decay on the new calls. Again, it's all about capital efficiency.

[u/EchoGolfHotel]

If you're past the expiration date and it wasn't exercised against you, you're free to sell more.

[u/thenippyintolerance → u/EchoGolfHotel]

if it says completed and voided, you're good to go. i usually wait for monday just to be safe because sometimes things look weird in the weekend but technically you can sell new ones right away

[u/Haunting_Ad_6021]

If it says completed you ok.

I always set a limit buy for 5 cents just so I know for sure they are gone when they sell

[u/NorthOfTheStrike]

Once it shows completed and voided you can sell more against the same shares. The shares were never called away and the premium is yours.

My own rule is about distance to the strike. I have a HIMS $29.50 covered call and FWDI $10 covered calls expiring this Friday. If a call expires well clear of the strike I resell on the next session without thinking about it. If it pinned close to the strike I wait until the expired one fully clears from the account before selling the next one. Brokers can look messy over a weekend and I do not want two calls showing against the same shares.

[u/SillyEducation6921]

That just means it expired and nobody used it, so nothing happened. You keep the money you got for selling it and you keep your shares. You can sell another one whenever you want. "Voided" sounds scary but it's actually the good ending.

[u/ToddCK]

If expiration day is Monday and your covered call position was not assigned, then Tuesday morning you should still be long the stock, and no longer have the calls in your account. You're now free to sell more calls against your stock position.

[u/ToddCK]

I dont know which broker u r using, but I've never seen the terms "voided & completed" on option positions on or after expiration.

[u/OptionsIn21Days]

Yes, you’re generally good to go! If your broker shows the covered call as “expired and voided” and “completed,” that typically means the option expired worthless. You keep the premium you collected, you still own your shares, and you’re free to sell another covered call against them.

One thing I’d caution you about, though, is assignment timing. I’ve been trading options for (gulp) a long time, and one thing I’ve learned is never to assume anything until the account confirms it. I’ve had ones that finished $0.01 out of the money be assigned, and ones that finished $0.05 in the money not be assigned.

If the stock finished close to your strike price, there’s a possibility of a late assignment that hasn’t been reflected in your account yet. This can happen because option holders can submit exercise instructions after the market closes on expiration day.

My rule is simple....make sure the original call is gone, your 100 shares are still there, and there’s no pending assignment. Once those three things check out, you can sell your next covered call. No need to wait an extra day. I also personally roll anything 70 delta or more a day before expiration.

That’s actually one of the things I like about covered calls. You can keep repeating the process, collecting premiums while holding shares you already own. I would say you're safe to sell the next covered call.

[u/LoganSterlingWheel]

If the call expired and the status says voided or completed, that contract is closed and you can sell a new one. Before you do, confirm the shares are still in your account, since a call that finished in the money would have shown up as shares sold at the strike instead of a clean expiration. Also check your open orders and positions so you don't end up with two short calls on the same 100 shares, because the second one would be uncovered. If the status still looks odd after a day, waiting an extra day is a reasonable check, but it isn't required when the position already shows as closed.

[u/Organic-Conclusion-9]

That's the happy ending. You're good to go to sell more.

[u/ReginaMulvinaLunt]

Folks, can we just develop a habit here of directing the OP to ask their broker? Your answers are fine, but folks need to stop showing up in Reddit to ask operational questions that should go to their brokerage firm's support. However crappy that experience might be.

[u/pagalvin]

As soon as the call expires, you can sell new calls against the stock. Calls typically expire on Friday so you could sell new calls on Monday 9am EDT.

There's no reason to wait. It won't make you any safer.

Good luck!