My amzn & Google naked put sell is In deep red . How to play it on Monday to recover the loss.

guru said:
1. I don't understand how did you lose $3000 (already by Friday) on the AMZN 1510 Put exp March, when that put was never worth more than $300 in the last few days.
Unless you've got 10 of them, or your broker (Plus500) sells $300 puts for $3000?

2. Time is money, so if you're still in that trade, you can try replacing your naked put with similarly priced LEAP put exp January 2022. For example replace 2150 March put with 1800 put exp Jan 2022, which seems to be similarly priced. Then you'll have plenty of time to recover, pray, or work 3 jobs to save money for 100 shares of AMZN in 2 years.
Though not sure whether that broker supports LEAPs, as they mainly specialize in CFDs?
And this may not be your best option, just an idea.
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You’re suggesting that he short a 2Y put?
 
PoopyDeek said:
You’re suggesting that he short a 2Y put?
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Yes, rolling it to a low-strike LEAP until volatility subsidies and until he can get a job - as one of dozens of possible ideas that no one else provided here...
(though that broker likely doesn’t support LEAPs anyway)
 
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SteveM said:
Is it time to schedule a wellness check for Millionaire Raj?
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I think he came down with the Corona Virus symptoms: Very high fever, dry at the mouth, shortness of breath and breathing difficulties.
 
guru said:
Yes, rolling it to a low-strike LEAP until volatility subsidies and until he can get a job - as one of dozens of possible ideas that no one else provided here...
(though that broker likely doesn’t support LEAPs anyway)
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Take the vol-risk for two years? He would've lost $1K on day one.
 
PoopyDeek said:
Take the vol-risk for two years? He would've lost $1K on day one.
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It’s not a risk if you can buy the shares in 2 years, I don’t know his situation.
Sometimes I’m hedged that far or wouldn’t mind having the stock, then trade LEAP puts for getting credit on debit spreads (selling LEAP puts at high vol then buying higher strike puts when vol subsides).
I’m not saying it was a great idea either, but I just didn’t see any others, while also not fully knowing his situation. I do agree that getting out with a loss would’ve been best, but he also asked what else he could do to continue playing...
(only $1K extra of temp loss today after losing $12K earlier actually seems positive at this point)
 
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guru said:
It’s not a risk if you can buy the shares in 2 years, I don’t know his situation.
Sometimes I’m hedged that far or wouldn’t mind having the stock, then trade LEAP puts for getting credit on debit spreads (selling LEAP puts at high vol then buying higher strike puts when vol subsides).
I’m not saying it was a great idea either, but I just didn’t see any others, while also not fully knowing his situation. I do agree that getting out with a loss would’ve been best, but he also asked what else he could do to continue playing...
(only $1K extra of temp loss today after losing $12K earlier actually seems positive at this point)
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C'mon man. The guy is short the front month weekly and you're suggesting he go out two years. You can probably assume that his situation doesn't include increasing his holding period 100-fold.
 
PoopyDeek said:
C'mon man. The guy is short the front month weekly and you're suggesting he go out two years. You can probably assume that his situation doesn't include increasing his holding period 100-fold.
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Yes, I can assume a lot, including that a lot more can be done with it later, or that making $12k back can take 2 years for some people.
Anyways, it’s easy to not propose a solution and criticize other ideas, so what’s your best shot for him to recover his lost $12k?
 
guru said:
Anyways, it’s easy to not propose a solution and criticize other ideas, so what’s your best shot for him to recover his lost $12k?
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I think the simplest suggestion would be to deposit more money, take the stock and hold on to it for a while.
 
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