Help with two losing options trades expiry jul12
- Thread starter Cereal
- Start date
Quote from diaoptions:
Simple solution:
- Buy TBT Aug 2012 15.000 put @ $0.45 (or the $16.00 put). http://finance.yahoo.com/q?s=TBT120818P00015000
- Forget BBVA, stock price is too low.
Thanks but this really is risking getting into the same problem again. Will look for other stocks for next month.
My solution is no different than any other solution to "repair or minimize losses". There is no free lunch, you will have to take on more risk no matter what you do.
Quote from diaoptions:
My solution is no different than any other solution to "repair or minimize losses". There is no free lunch, you will have to take on more risk no matter what you do.
Yeah but is this a "solution" or just a new trade altogether? If the latter then I might as well scan through all the other possible trades out there.
New Trade = Repair Strategy. You can get all fancy with "repair strategies", but no matter what you do it is no different than a new trade.
Stick with longer dated options IMO. Minimum 4 months. You'll have more time to be right.
It appears that you're account value is small and buying several positions of one position/month is good for your broker but not for you.
It appears that you're account value is small and buying several positions of one position/month is good for your broker but not for you.
let it epire worthless, there is obviously not lot involved.
buy otm call next week with big size. I doubt those small stocks may not have this kind of volume. if that case avoid them totally.
buy otm qqq/spy call next week with a little bit big size, just hold on, if shooting more, add more then if it hit old high, dump them all there.
when I get a loser, I just ignore it totally, let it expire, or reverse it. it is fruitless to fix a not working position. judgement msitake can not be fixed, either dump them or ignore them and move on. all you can do is: do a new one.
buy otm call next week with big size. I doubt those small stocks may not have this kind of volume. if that case avoid them totally.
buy otm qqq/spy call next week with a little bit big size, just hold on, if shooting more, add more then if it hit old high, dump them all there.
when I get a loser, I just ignore it totally, let it expire, or reverse it. it is fruitless to fix a not working position. judgement msitake can not be fixed, either dump them or ignore them and move on. all you can do is: do a new one.
why buy a higher call?
Either
1. sell for loss and open higher ATM or ITM puts in back month
2. sell higher strike put for July and create backspread - then "hope" underlying trades a lot lower.
3. sell current position and buy smaller quantity of Aug/Sept so that you get 'some' value out of your current position; i.e you own 10 puts at .15 sell and buy ONE or TWO Sept or Aug ITM put
4. trade underlying in opposite direction depending on deltas and margin and T/A and volume on current price level
There are no magical repair methods for a trade gone wrong. From before opening any trade you have to have an opinion about the future evolution of the underlying's price and of the options' implied volatility, and a clear plan of when and what to do both if the trade goes against you or it goes your way. You should follow your plan. Also, it is advisable to trade liquid markets.
Do your analysis now, as if you didn't have any open positions, then adjust your current position to reflect your current view, or get out. Don't hope!
If you're not familiar with all the aspects of options' trading, stop now because you're gambling without knowing your odds.
Do your analysis now, as if you didn't have any open positions, then adjust your current position to reflect your current view, or get out. Don't hope!
If you're not familiar with all the aspects of options' trading, stop now because you're gambling without knowing your odds.