Debit spread to minimize loss

J

John9999

I’ve been purchasing straight options lately. Never really considered debit or credit spreads but it certainly has my attrntion right now.

Here’s my question. Let’s say I’m long a call and it’s going against me currently. Does it make sense to short at the money or out of the money call to generate some premium to offset the current loss?

Sure I’m limiting upside profit if the underlying goes up. But I’m ok with that.
 
Thanks. I’ll take a look.
All year it seems like I’m fighting the markeT. I go calls and the underlying goes down. Go puts and underlying goes up. I use all the typical analysis and especially trend and ketler bands. So I’m going w trend and entering either over bought shorts or over sold longs.

Maybe I just start entering debit spreads and then I make money up down or even on the underlying.
 
Yes that was my thought exactly at this time. Just start off with a debit spread and let it play out. Most spreads will generate a return of double digits on a 60 day spread. And that applies whether the underlying goes up, down or stays even.

Sure I don’t have the opportunity to make a humongous percent return line just buying the call or put. But just doesn’t seem to be working out lately

Plus a like the idea of just putting in place and letting it run. Takes a lot of stress out of the equation. I think I’m just getting burned out on having to watch everything all day every day and put so much energy into it all
 
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