Hi Dealer: Yes, rr5 is PROUD of ya. You did the right thing.
Just to get to the July 165 strike is about 53% from here. Best to get out now, hopefully at not too much of a loss, but regardless, the idea is get out of a bad play with something left to use to trade another day.
Many many times over the years, as an options investor, I have taken losses and moved on when others I know would ride the position out, time eating away at what little was left in their position, and only to see it never really recover like they figured it would (i.e. in your case, < 90 days, and so far OTM). Instead, I'd take what I could get and move it into maybe the very same stock but in a lower strike and with more months. While taking the loss initially, I ended up making more than if I'd held on to the poor position. It is a mind-set thing I guess to overcome this notion of holding on to a position until it comes back like you would a stock.
Now you have moved on, taken what capital you could get and moved into a higher probability options position, with a better strike and more time. I prefer 4-6 months out.
Don't look back. You did the right thing.
rr5... Rick |
