r/options
Roll the put up or not
Author holds INTC shares and deep OTM puts, debating whether to roll puts up to $120-125 for downside protection despite high IV.
- INTC has appreciated significantly, showing strong upward momentum.
- Author maintains a long-term hold thesis on the underlying shares.
Market context: INTC has appreciated significantly since entry. The $28 puts are now deep OTM, providing protection \~$97 below current price (\~$125). IV on INTC Dec 2028 puts is currently 77.9%.
My analysis: The protective value of the current puts is minimal at current prices. Rolling up to a strike closer to market price ($120-125) would restore meaningful downside protection but at significant additional premium cost given high IV. The theta decay on the existing puts is also working against the position.
What I'm considering: Rolling the puts up to the $120-125 range for Jan/Dec 2028 expiry. Cost of roll estimated at \~$5,000 for 3 contracts at mid.
Trade-off I'm weighing: Higher premium cost now vs. restored protection closer to current price. Given long-term hold thesis, is the cost of roll justified vs. simply waiting for a pullback to re-evaluate?
Exit plan: Long-term hold on shares. Puts used purely as portfolio insurance, rolled annually."