Fix Broken Trades With the Repair Strategy

[Quanto]

And you're not blind? What makes you so sure the stock will bounce back up?

Pros don't dig their own graves. They wouldn't allow losses to grow in the first place. Only amateurs allow the hole to get so big that it swallows them whole.

You should first read the article. The drop was caused by bad ER, ie. happened just overnight.
And: the algo makes use of earning credit by ShortSelling options.
I'm not the author of the strategy, nor of the article.

 

[shMark]

Is that the same as Alan Ellman's stock repair strategy?

 

[Quanto]

Here's another article on the Stock Repair Strategy with examples:
https://optionstradingiq.com/stock-repair-strategy/
"
STOCK REPAIR STRATEGY
[...]
Assuming the goal of the investor is to simply recover the losses and get out at breakeven, a strategy called the Stock Repair Strategy can be employed.

The strategy involves adding a call ratio spread to the stock holding.
[...]
"

 

[rb7]

Here's another article on Stock Repair Strategy with examples:
https://optionstradingiq.com/stock-repair-strategy/

You should try one of these next time you have a losing opened position and come back here with the final result.
Oh wait, you're not trading with real money yet don't you?

 

[Quanto]

You should try one of these next time you have a losing opened position and come back here with the final result.
Oh wait, you're not trading with real money yet don't you?

What an idiotic posting....

 

[Quanto]

Is that the same as Alan Ellman's stock repair strategy?

Yes --> https://www.thebluecollarinvestor.c...keven-price-points-the-stock-repair-strategy/

 

[shMark]

Yes --> https://www.thebluecollarinvestor.c...keven-price-points-the-stock-repair-strategy/

Anything Alan Ellman likes, I like. I have found him so helpful.

 

[TheDawn]

No Problem. I'm no longer interested is assisting you in learning the terms and possible P/L from different strategies you read online. You think that is learning trading. It's not. I've done my best to patriciate in most of the threads you started, I will not forward because it does not seem like you listen to advice. Good luck to you-Bob

He's just a troll. Better to read his posts as entertainment pieces.

 

[TheDawn]

Wooo I got blocked by @Quanto because I called him a troll... LOL

 

[TheDawn]

Yes and No.

My point is the more you repair, the more $$$ you lose, and the more stress you will suffer.

No the thing with the wheel strategy which is what this "stock repair" strategy really is is that you shouldn't keep the stock just because you think keep writing calls would ALWAYS lessen a significant amount of your losses hence "repair" your stock trades. The wheel strategy only works for stocks that are in a temporary downtrend or in a consolidation phase that they are destined to ride out eventually. For stocks that are in a permanent downtrend due to a change in their revenue-earning ability, change in the market that their business is in or some other fundamental reasons, it's best to trash them and invest the money somewhere. It won't be worth it to keep writing calls on them. This is where the more you "repair" the stock, the more stress you will suffer.