Should I sell covered call or cut loss?

When you take a simple position (long) and add trades that were never part of ur original plan, making it unnecessarily complicated because of an unwillingness to take a loss, my trader friends call that 'making a salad'. And unmaking a salad is much harder than making one.
 
deaddog said:
The market still doesn't care where you bought.
More...

The market doesn't care but what I guess Nobert means by "depends on how deep in the red you are" is that if the stocks OP hold are very oversold, it might be a good idea to hold them at this point, in hope they'll comeback.

Of course it depends what stocks...
 
If you decide to hold consider a 1X2 instead of a CC. For example, if you bought the stock at 40 and it's now 30. Buy 1 30 call and sell 2 35 calls. It doesn't stop and bleeding if the stock drops more, but it drops your breakeven to 35. Run all the outcomes and understand the dynamics before you do and your account needs to approved for both CC writing and spread trading. You change the slope of the payoff between 30 and 35. Decent vol. and a few months time and it MAY trade for nearly free. Doesn't cushion any additional downside like a CC, but it should give you a better BE. All kinds of variants doing correlated ETF or index options, but that will take bigger capital.
 
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