how would you play it out

Discussion in 'Options' started by met1989, Jun 26, 2018.

  1. met1989

    met1989

    in my DEMO
    i have a call expire on friday for 2785 and its losing a lot how would you try to cover up losses ?
     
  2. tommcginnis

    tommcginnis

    Understanding you to mean by "DEMO" that you're just looking for things with which to experiment, consider:
    1) selling the 2785. {"money in your pocket!"}
    2) selling the 2765 {"but now, there's risk! $20-worth! IN FRONT of your call!"}
    3) selling the 2675/2670 put spread, garnering ~50¢ -- same as the lone 2785 call. {"but now, there's risk! $5-worth -- even if a goodly distance away..."}
    4) rolling the 2785 one week to Jul06 2790 (which costs ~80¢), and then selling the 2795 to recover the extra cost. {"you've just re-used that bit of value, kept your risk constant, but capped your gain at $5."}
     
    Last edited: Jun 26, 2018

  3. No Fear or Greed.