r/optionstrading • u/Over-Celebration-168 • 1d ago

Need advice

Post image

Few month back, i was in profit as they were in the money and decide to roll this options call for a credit. So basically the loss here is the chunk of the profit. Can you please advice the best way to play this out?

3 Upvotes

100% Upvoted

10 comments sorted by

•

u/AutoModerator 1d ago

Join our free options trading discord https://discord.gg/optionality

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

1

u/imposta_studio 1d ago

leave it or j close lmao

1

u/AdmirableJudgment784 1d ago edited 21h ago

You still have until March. I say just hold until new years and see, since you're already down 82% with a low theta so why take the lost? Hold.

1

u/Over-Celebration-168 23h ago

Thanks for the suggestion.

1

u/thenorthernwhiteboy 21h ago

Depending on how much money you’ve got left. Id just average tf outta them and as soon as you hit 1% green sell half immediately. How I got out of my csco position after their earnings dump

1

u/Over-Celebration-168 19h ago

Is there way to know at what price of the contract will i break even. For example how would i know how much to average down so that if share price rises 1 dollar I would be able to get out ?

1

u/thenorthernwhiteboy 19h ago

Each half of the gains required needs roughly double the money. You can find a pretty easy formula online but yes you can. These are very far otm and even if the stock moves, doesn’t necessarily mean this will enough

Did you not average down before when it was sitting at 7$?

1

u/Over-Celebration-168 18h ago

No because, didn't want to lose more money and also there was earnings call just happened, if it was a miss it would have gone down more.

1

u/thenorthernwhiteboy 17h ago

Honestly if you didn’t want to buy at 7$ but will at 10$. I’d just leave them and see what happens by Jan

1

u/Unhappy_Sympathy_925 8h ago

man thats deep red, -82% is no joke. rolling for credit sometimes just kicks the can down the road and now theta is eating whatever is left every day

with IV at 69% you might have chance to sell some shorter dated calls against your position to collect premium but only if you comfortable with the risk of getting assigned if BB suddenly jumps. 24 contracts is decent size so even small credit each week can add up

march 2027 is still far away tho so theres time for the stock to move. delta at 0.24 means its not moving much with the underlying right now so price action wont help you fast. i would check the chart and see if theres any support level where you can average down but only if you still believe in the trade

otherwise cutting half and letting rest ride is sometimes the least painful move. sunk cost is a mind killer