I've had them since the fall of 2012, they closed at 3.80 today, so they really aren't providing me with any premium. Now that the stock is over $5.00, the stock actually provides me margin buying power , where the options did not.
On second thought, you should have waited for the 12-month period and saved nearly 20% in taxes (difference between capital gains and regular income tax). If you are reinvesting the entire proceeds make sure you have money on the side to pay for taxes. If it is substantial you may have to send the estimated taxes by end of this quarter otherwise interest will accrue on it.
Good move. The higher strike prices provide a better return. I would reinvest it on the 2015 $7. At $1.65/shr your $3.80 will turn into 2 shares with a higher return potential. Its both volume and rate of return. I am not an expert in Options but I am seeing how the 'In the Money" strikes are barely moving.
I would have not done that; however, good luck to you.
Here is why
Stock Price = $5.31
Strike Price = $1.50
Calls Implied Volatility ~ 79%
Theoretical Price = $3.83
Delta = $0.99 (= Change in Option Price for every $1 change in Stock Price)
Gamma = $0.0088
Theta = $-0.0002
Vega = $0.0013
Rho = $0.0094
If the stock retraces the Delta currently at $0.99 will become lower as the stock moves closer to your strike. meaning that the effect or the Change on the Option Price compared to the Stock Price will have less and less impact. On the other hand if the stock keeps going up, what you have done won't matter since Delta being at $0.99 is very close to $1.00 and Delta cannot go over $1.00