### Comment:
Can you explain that to me (or point me to a resource that does)? Why would it make sense to sell your ITM calls and buy OTM calls?

### REPLY:
Let’s say MU spikes to $100 and I own 800 contracts of $50 strikes.  My delta is $80k on invested capital of $4M at that point (excluding premium paid to keep it simple).   If I sell and buy $110 strikes with all that money, the delays would be much higher due to the many more contracts I could purchase.  Let’s say the premium is $10, so I could buy 4K contracts.  Break even is $120 buy the delta might be about $200k to start vs the $80k it was before.

### END.