herm,
that's a tuff call.
my gut is in knots on SCOP and i just don't know if averaging down is a good idea.
i never thought it would get this low so who knows how much lower. when it tanked, it leveled off at 19 for a day and then dropped some more. i could have gotten out then. i could have written the oct20c for 1-1/2 then. there weren't any puts below 20 at the time, so i couldn't buy pp's at a cheap premium. i just thought it would do a dead cat for a couple of points, then bang, it dropped way more.
now, i'm sitting here with very little margin left wondering if i should average down SCOP, wait it out, or get out and do my portfolio repairs with something more friendly.
i figure with normal repairs, normal appreciation and some good fortune, it will take 6-8 months to repair SCOP down to current price. of course, if it appreciates, i could repair quicker or get called out at a loss. if it tanks more, who knows what will happen.
suggestions are appreciated, prayers even more.
cheers,
jim. |
