Two of my option plays have really surprised me.  First, the $22.50 short calls on C are now in the money.  If these are assigned, that's fine, I made money on premium.  It isn't exactly how I wanted it to play out, but it's not a bad situation at all given financials.  I may even be in the black on financials this year thanks to option income.  The second is my short $20 puts on GE.  I shorted these puts during the first big down turn a couple of weeks back.  Since then, GE went back up to over $26 making the juicy premium collected on GE seem like easy money.  Of course, nothing is easy or goes as expected as GE looks like it may be flirting with $20 per share if things keep going the way they are.  Admittedly, I'm scrambling for a plan.  I don't mind getting assigned at $20 because I think it's a wonderful price for a well diversified and massive company.  But the question becomes, do I want any more?  If GE dips below $20, is it a good time to sell some 17.50's or 15's?  Or do I just write calls like I did with C?

I normally already have my mind made up for these situations, but again, this seemed like easy pickings for premium just a couple of weeks ago.  It's probable that this will still turn out to my advantage (i.e. puts expire worthless), but it's always important to have a plan long before the unexpected happens.

Many of the option forums I frequent have many a topics of "I have position X and it's way in the red, how do I adjust?".  Shame on you.