u/bearoftheyearingear ·
Reddit — r/thetagang
· July 10, 2026 at 19:36
· ⬆ 20 pts
· 💬 61 comments
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You sold a CSP on a boring stock (Berkshire, Chevron etc.) with 30-45 days to expiration, fast forward a few weeks, it's still OTM and almost worthless - delta below 0.05, 2-3 standard deviations from ATM - but it still has 1-2 weeks to expiration and market makers don't want to let you close it at fair price based on black-scholes, let's say you can't get a fill at 25-30$, maybe at 40$
At that point, do you guys close your CSPs? Or just ride them to expiration?
Let's say buying power for new positions is not an issue in itself
I guess tail risk is the main issue at play here