Flehmenlips
Member
I am an abysmal trader. I think I am going to close out my DITM 1/28/22 BPS at max loss and open new ones at this low stock price. Not sure what else to do at this point.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Thinking same. Finding a reasonable bottom to stay 20% away from and how far out isn't evident to me right now. Is it the mid 8s?
BrownOuttaSpec
Active Member
Same for me.... still holding my 1/28 980/830..... Wish i rolled late yesterday for a credit. Trying to determine to roll for a large debit, or just close it out, or roll way out and up Dec '22 1200/1050.
What else is the growth relative to?
Is it reasonable to add 70% to earnings, use that for PE, and then call out 70% growth? That seems like two years of 70% growth.
It appears that some individuals have closed positions at max loss. Is there a reason to close at max loss vs rolling and keeping them alive regardless of how dire that prospect looks? I do realize a roll of ITM spreads does take a debit to roll or additional margin to widen the spread. Unfortunately, it looks like i need to start managing these positions.
scubastevo80
Member
My long put was $960, so didn't really want to keep paying debits in hopes of a turnaround. We also didn't want to lock all money up into a position where 2022 becomes a "hope of recovery" year and we don't earn anything.
Here's my situation with one of the 1/28 positions, others for Friday are similar.
To roll, at current price of $857, its $3200+. I only received $4885 credit when I sold this spread. By rolling to the 4th, the issue get's worse if the downturn continues. To close out, the loss is -$17,421.00... not pleasant.
Thinking that if I open new spreads now, eat the loss, maybe make up half with the new credit.
Per my options level, I can't sell naked puts. open to ideas. Have a couple more that are similar.
Flehmenlips
Member
A combination of no cash or margin left to work with and very DITM spreads has left me with incredibly undesirable options for rolling. I fear I will be digging a deeper hole and end up losing more if I roll. Whereas buying back the spreads may give me the opportunity to open some new positions at what *seems* like a "bottom" and earn back some premium to counter the losses...
Flehmenlips
Member
Flehmenlips
Member
My short legs are -1120p, -1100p, -1080p
My long legs are +1000p, +950p, +910p
I also have +800p and +840p as protective puts.
In addition my core shares are deep underwater as well, which pinches margin harder.
It is pretty ugly. Ah the lessons hopefully learned...
When I try to roll, the margin requirements won't allow me to do much other than roll up and out quite a bit, and going far out in expiration doesn't seem to help much, or even makes it worse so I am looking at rolling short expiration and in the -1200/+1000 range for 2/4 or 2/11. I am less than optimistic about that type of roll at this point.
If you close today this week, it is max loss. If you roll up and out without any additional margin requirement, do you not maintain a chance of regaining some of the max loss?
Flehmenlips
Member
I suppose. But I also possibly increase the potential size of the loss. And if conditions maintain or worsen, I eventually run out of room to roll. In the meantime it seems I am sitting on that potentially losing position when I could alternatively be starting the recovery process sooner by selling spreads now when upside potential is rather good. I am not sure. Still thinking it through, but nothing is looking very good.
Flehmenlips
Member
It seems you could roll the strike prices up a bit for next week and wind up with a smaller debit or perhaps a credit?
I did something similar during Elons sales period.. rolled an almost fully itm bps out and up, essentially for zero credit and no change in margin.
And then my short legs were assigned early, 3 days before expiry. So there is that..
And then my short legs were assigned early, 3 days before expiry. So there is that..
Well there should be a long leg in the green, no? That limits your losses. And the bit between your short and long leg is covered by your margin.
True. I may sell 800/700 for 2/4, use the proceeds to roll out the 1/28 950/850 to 2/4 ... will buy some time for sensible market to return
InTheShadows
Active Member
Macros are in theI keep thinking it can't go down any lower..., and then it does.
now too. No chance of recovery today now.Similar threads
