Drowning deep underwater TSLA SEP25 470/460 Credit Spread

[deltaf0rce]

Tossed on the towel on the institutional game??

You worked at an IB and left the gravy train??

Yeah kid. Long story. Couldn’t find my calling - technically I still do, but on the wealth side of the house - it’s v Hard to make that move back over

 

[taowave]

Kid??
I wish

 

[qlai]

'You risked 474. MTM risk is only $120 from here. Is it worth $120 to you as an upside lottery ticket paying almost 9x risk above 470 on shares?'

First sentence fully understood, second one don't.. where's the 9x risk? sorry that as much as I tried can't grasp the question.

I don’t think this was answered, and since I would like to understand it myself, I will give it a shot.
If you close your long put leg, but keep the short leg, the most you can still loose is 1.20 but if the stock rallies you stand to recoup all/most your losses. So you can think about this as equivalent of paying 1.20 for call debit spread with short leg at 470.
Please someone correct me if I’m wrong.

 

[deltaf0rce]

Please someone correct me if I’m wrong.[/QUOTE]

I don’t think this was answered, and since I would like to understand it myself, I will give it a shot.
If you close your long put leg, but keep the short leg, the most you can still loose is 1.20 but if the stock rallies you stand to recoup all/most your losses. So you can think about this as equivalent of paying 1.20 for call debit spread with short leg at 470.
Please someone correct me if I’m wrong.

He was telling him it was pointless to roll another deep in the money credit spread on such a short time frame. No catalyst and you’re making a buck and risking getting hit for 9.

 

[up300konngz]

atleast you didnt buy the 9/25 500CALL in a roth ira with 12K in it. it was up $1500 at one time...

im dead meat. i would absolutely LOVE to sell this bih for 1/2 the $5K purchase price.

 

[DarthSidious]

If you close your long put leg, but keep the short leg, the most you can still loose is 1.20

If he closes his long put, he will be short a put with unlimited downside if TSLA keeps sliding down. What $1.20?

 

[qlai]

If he closes his long put, he will be short a put with unlimited downside if TSLA keeps sliding down. What $1.20?

Yes. I realize what I wrote was nonsense.

 

[DarthSidious]

Well, that's why dest was advocating not trying to repair. As all "repairs" would take on additional risk so it's not really a repair.

"unrealized loss" is the worst con in trading / investing

 

[destriero]

'You risked 474. MTM risk is only $120 from here. Is it worth $120 to you as an upside lottery ticket paying almost 9x risk above 470 on shares?'

First sentence fully understood, second one don't.. where's the 9x risk? sorry that as much as I tried can't grasp the question.

The short 70/80 call spread makes the spread riskless from the current mark (880) and even w/o it you're risking a further 1.20 to make 9x that if the shares rally beyond $470.

 

[trade2020]

destriero is right on here. why fix a loss when you can just close it for a loss and move on to another trade instead of being fixated on a trying to fix a bad trade. There are thousands of new trade opportunities every day

Why are people so inured on fixing losses? If it sucks, close it.

You shorted the Sep25 460/470 put spread for 5.26?

You can short the Sep25 470/480 call spread for a buck. You'd be left with a 60/70/80 (short) iron fly for 3.74 risk; your risk, not marked. You need 470 best case. Reduces your loss by $100.

You're long a synthetic call spread. You can short an OTM put spread, but you're now in two bull verticals. Dumb. IOW, it's too late to trade a bear spread to fly or condor the thing off. You're 1.20 from max loss.

THERE IS NO FN REPAIR. Your Lambo is totaled.

Dude, stick to Sep25. Why roll to Oct and take the vega when you're going to be trading yet another bull spread in Oct when the Sep expires? Adding bull spread to bull spread.

Why are people so inured on fixing losses? If it sucks, close it. There is only 1.20 in juice in the thing anyway. If you're ok with losing $120 then leave it be. If not, close it. My guess is that you won't fill much under $9, so move on. The need to be right is a strong motivation.

You risked 474. MTM risk is only $120 from here. Is it worth $120 to you as an upside lottery ticket paying almost 9x risk above 470 on shares?