200 shares of SPY bought at 286 - any way to rescue or generate income?

Discussion in 'Options' started by Johnmaine, Jul 28, 2018.

  1. I was going to roll those puts, as I always do, but there was a fire alarm in the apartment building and we had to all evacuate. After about three hours we were allowed back in but by then the markets had closed and my puts had exercised.
     
    #11     Jul 28, 2018
  2. Robert Morse

    Robert Morse Sponsor

    So sell the stock and sell the puts you want to be short as a spread. Discipline.. Then you end up with the trade you wanted and move on.
     
    #12     Jul 28, 2018
  3. Wish I could do that and stomach the loss. But those 200 shares represent almost my entire portfolio / savings / net worth.
     
    #13     Jul 28, 2018
  4. destriero

    destriero

    Short four calls at a strike that you’re targeting. The 200 shares and four short calls = two short straddles.
     
    #14     Jul 28, 2018
  5. Robert Morse

    Robert Morse Sponsor

    This is my last comment. I'm trying to help. If you can't afford to lose 4.58 points on 200 shares, you should not be selling naked puts. That money is lost already. Now you have to choose what you want to do.

    It's your money,

    Bob
     
    #15     Jul 28, 2018
    SteveH, traderslair, spindr0 and 2 others like this.
  6. Not sure I understand how that will work.
     
    #16     Jul 28, 2018
  7. Thanks - appreciate your input.
     
    #17     Jul 28, 2018
  8. FSU

    FSU

    IMO, Robert Morse gave you excellent advice. (as usual)
     
    #18     Jul 28, 2018
  9. Agree with that!
     
    #19     Jul 28, 2018
  10. destriero

    destriero


    Short call and short same-strike put = straddle
    Long 200 SPY; short four calls = straddle
    Long 100 SPY; short two calls = synthetic short straddle

    As has been stated; if you don't know the mechanics then it's best not to trade vol.
     
    #20     Jul 28, 2018