200 shares of SPY bought at 286 - any way to rescue or generate income?
- Thread starter Johnmaine
- Start date
Take your loss and move on to the next trade.
1. If you don't need the money, file it away like a CD, use DRIP and in 20 years' time, you will be thankful.
2. If you need the money, sell and get out now.
3. If you want to learn how to trade options, follow Handle123's method: "dance options around your position" and learn to juice your return using options as leverage.
4. Get a good option book and study it thoroughly.
Robert Morse
Sponsor
Honestly, this is a terrible way to make decisions. You are long 200 shares. The cost is only relevant for taxes. You either want to be long the 200 shares or not. This was obviously not a day trader or short term trade. If your expectations have not changed, stay long. If you think you were wrong get out. This is true for every position unless you have reach your max loss you are willing to endure or you have reached your target.
I was forced to purchase these shares when my two contracts on SPY 286 Puts got exercised.
Robert Morse
Sponsor
Makes no difference. You either want to be long or not. It is a matter of discipline. Trading options around it creates bad habits.