I would say use this as a learnings experience, if you are going to but otm money options give your self more time better yet to calendar spread or diagonal so that time works in your favor. For example, when TSLA dropped to its 50ma I sold the Oct 500 calls and bot the Jan 500 calls. Sell the sucker options buy the smarter options.
oh nah....my issue was not looking at the chart when i got my 500CALL. i knew better, but wasnt thinking. i THOUGHT the trend $TSLA was on was the normal one...but it was a huge spike up like all the other tech stocks. its def not going to $750 before the 25th. i think after battery day it will fall back down a bit. my theta is abou -$600 next week....so im hoping for a big run up on monday...if not...im just gonna take what i can and sell. kinda scared to wait for tuesday. just hoping for big moves monday. i would be sittin so pretty if i had got my call at around $350.
i most def have learned. im not going to be afraid to sell if im up $1000 or $1500. at least ill be playing w/house money at that point. and i can build up from that. i wont be doing any $5K plays anytime soon either. im going to stick w/$250-500 option lots.
This is no different with the case that you have $20 and ask what position to enter, to try to earn $20 more. The reality is, if you want to try to get to $40 you have to risk losing your remaining $20. Whether or not to get out is up to your preferences.