Need Advice on A Position (Major Loser) Dollar-Cost Average?

[taowave]

Which is why I said he is punting.....

 

[murray t turtle]

Thanks for the comments thus far everyone. I planned on this being a long hold at purchase time and admit that because of my commitment and belief in the company I did not set a stop loss or even have an idea in my head of a % drop that I would exit. In my mind I planned on selling as soon as it neared $100 again no matter what duration. Lesson learned the hard way.

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Good news XOM is still doing good. BUT I hope you dont find out the hard way why many use a 200 day moving average

 

[Seneca Pilot]

Took a long position last November in a company I believed in (and still do). It is an oil and gas company named Cimarex Energy (XEC) and I have worked with them off and on since 2010. I bought 220 shares @ $90.58 for a total investment of $19,928 and it has basically steady dropped since my purchase to a current price of ~$70. I bought in because I saw them with my own eyes making good decisions...they have smart management and have always held a great reputation in the Oklahoma Oil Field.

I have started this thread for your "Elite" opinions on my position. I plan on keeping it for the long run but am open to suggestions. I am considering buying more shares while the price is down to average out but undecided.

thank you in advance for the advice, I know these types of questions might be annoying to some of you seasoned traders and I appreciate your time. I am serious about becoming a better trader and researching every day educating myself to get there.

Ok, if you can trade options in your account here is a plan. Start selling covered calls. You have enough stock to sell two. You should be able to net a few dollars while you wait. I would sell the 17 May 75 strike if I could get someone to pay .50. With two option contracts this will get you 100.00 minus commissions. This will get you some basis reduction. If the stock moves over 70 start selling the 80 calls. Keep selling the calls until you are called out over your basis or until you are ready to sell the stock.

 

[murray t turtle]

Ok, if you can trade options in your account here is a plan. Start selling covered calls. You have enough stock to sell two. You should be able to net a few dollars while you wait. I would sell the 17 May 75 strike if I could get someone to pay .50. With two option contracts this will get you 100.00 minus commissions. This will get you some basis reduction. If the stock moves over 70 start selling the 80 calls. Keep selling the calls until you are called out over your basis or until you are ready to sell the stock.

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Sell something...……………………………………………...Wisdom is profitable to direct

 

[Seneca Pilot]

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Sell something...……………………………………………...Wisdom is profitable to direct

I don't have anything to sell.

Yes, though, it would be potentially profitable for the OP to sell calls against the stock to reduce his basis so that he can come to profit sooner or get out with a smaller loss.