I need advice on selling an option

[Triplethought]

Early last year I purchased a call on Walmart $140 strike 1/21/22. after watching it in the red all year it's doing what I thought it would do - as christmas approaches it's finally running up. Those who are more experienced with options - should I sell close to Christmas or should I wait until January?

I know we can't know what Walmart will do (something tragic could happen in a store or something) so the question is more about - is it wise as long as it's positive to wait til the last possible moment and sell a day before expiration? I assume if I let it expire even if it were positive it would be a bad thing?

stock symbol .WMT220121C140

[AstuteShift]

The more time passes the more theta decay builds up and the option loses value faster

You could sell and buy a later expiration date to avoid this but given SOLs update the market could have a robust rally soon, WMT looks decent however it’s not a high flyer stock

[Eric]

What is your current gain/loss on it? If it were me and I were sitting on 80% gains I'd sell in a heartbeat. Fauci could cancel Christmas, supply chain disruptions could cancel Christmas, the Pfizer variant could cancel Christmas... Time value is about to start evaporating faster than than any memory that "horse-paste" won the nobel prize for medicine (for humans) just a few years ago.

[Triplethought]

What is your current gain/loss on it? If it were me and I were sitting on 80% gains I'd sell in a heartbeat. Fauci could cancel Christmas, supply chain disruptions could cancel Christmas, the Pfizer variant could cancel Christmas... Time value is about to start evaporating faster than than any memory that "horse-paste" won the nobel prize for medicine (for humans) just a few years ago.

I'm only up 32% on the call right now. I understand theta is working against me. But it seems as long as walmart is above $140 I should be OK even at the last minute nest pas?

[AstuteShift]

What is your current gain/loss on it? If it were me and I were sitting on 80% gains I'd sell in a heartbeat. Fauci could cancel Christmas, supply chain disruptions could cancel Christmas, the Pfizer variant could cancel Christmas... Time value is about to start evaporating faster than than any memory that "horse-paste" won the nobel prize for medicine (for humans) just a few years ago.

I'm only up 32% on the call right now. I understand theta is working against me. But it seems as long as walmart is above $140 I should be OK even at the last minute nest pas?

Check the site option profit calculator and you will see the destruction of theta decay

[Triplethought]

I'm only up 32% on the call right now. I understand theta is working against me. But it seems as long as walmart is above $140 I should be OK even at the last minute nest pas?

Check the site option profit calculator and you will see the destruction of theta decay
[/quote]

Thanks Astute. That was helpful. I was wrong I'm only up 18.2% right now. By staring at the chart on optionsprofitcalculator.com along with the stock chart I decided I should assume WMT will likely not go above $152 in the next month or two and that if I sell around Mid December when the masses have frenzy around Walmart it means I should put my limit order on the call in at around $12.55. If I see it likely to go higher I can move the target but knowing what my option sell price should be was very helpful.

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[AstuteShift]

Yep the website saved me from many bone head decisions

Also shows you how rigged options are also, numbers and facts don’t lie