So I’ve been wondering for a while, if someone has a call with a strike that becomes deep ITM, is it a good idea to keep it until expiry or to move to higher strikes during a “squeeze” play? In theory, if AMC was to ever reach it’s $70 market price and go beyond that (let’s assume it goes to $150 to simulate the GME situation), would it be wise to hold onto a call that has a $43 strike(deep ITM) or to keep moving to higher and higher strikes? For situation sake, let’s say my calls expire on 11/19 and AMC made a move to $70 on 11/15 and a move to $150 on 11/18.
I would say the simple answer is take the profit when you see it - kind of my standard response.
If it is a true squeeze play, once it hits the peek is when I would sell - in my experience, not all squeeze plays work out the same. - Opportunity costs play a big role also, you could sell said strike for massive profits and decide when to reinvest in a higher strike point ideally during a dip or for less money, securing some of the profits from the first go around.