@BlueWaterSailor, got it. You have a short 135P and a short 140C (and a long 195 C).
Spot on.
I see ROKU has fallen again today, which is the complete opposite of what you needed. With the credit you have collected, your break-evens at expiry are 123.1 and 151.9, which is quite a wide range. You have 4 weeks left, so no need for drastic action yet (not that you were going to do so). And if these are cash secured puts, and you don't mind owning the stock, then as much as the situation hurts, it's part and parcel of premium selling. Although it's a negative right now, the high volatility in ROKU will come to your benefit if/when you own the stock, cos then you can sell covered calls against it to recoup the losses.
I'm curious to see how this plays out.
Thanks - that's good reinforcement for exactly how I'm looking at it. A very smart guy who is helping me out told me that I should look at it as if I already own it and am just trying to improve the basis; that's a really good perspective, and lets me build a good plan for what to do.
As to ROKU falling - honestly, it doesn't bother me much; just a remote "darn, it would have been pretty cool to watch this come back" sort of a minor annoyance. I don't mean to be
blase about money, but... it's less than $14k if it somehow magically goes to zero. I don't want to boast, but I've had weeks in the past when I've made that. I'm not so rich that I can just dismiss that amount with a laugh, and I sure don't want to blow out my account, but this isn't even close to any of those things at the absolute worst.
But here is The Thing: when I made my first trade, barely five months ago, selling one single share literally kicked off
terror in my brain, like nothing else has in... man, I don't know how long. Decades. I've been shot at (more than once), been stabbed in a fight, spent days battling storms, had the eye of a 145mph hurricane pass over me, jumped out of perfectly good airplanes, sat on the edge of a cliff dangling my feet over nothing but empty air, got into a bad "crab" while balls to the wall taking off in a crosswind... nope. There was
something living in my head that totally lost its shit when I placed my first dollar at direct, obvious, visible, unmitigated risk.
(Never mind that all of us do that every day of our lives. If you get on a bus to go to work, you're betting that dollar, and your time and effort, that you'll get paid for it. But
nobody thinks about it that way.)
That terror does not exist any longer. It's gone. I will admit that I got pretty nervous watching the ROKU P&L go to -$1k yesterday - that's the first time any of my trades went that deep in the red - but it was a "
fuck, I wish wasn't this pig-ignorant!" frustration triggered off by seeing that number, and not about the number itself.
Excising that hidden fear? If I'd known the son of a bitch was there, and couldn't get rid of it any other way, I'd have gladly paid a psychologist $14k and more to pry it out for me. Assuming they could. (You mean I've carried that bastard in there for 50-plus years??? Can you
imagine how much it's cost me in all that time???) Trading has - if not killed it dead, then at least turned it into a mosquito-sized pipsqueak making amusing, cartoon-chipmunk noises in the background. And you know what? I got that
for free, while doing some cool trading shit.
Can't beat that with a stick.
