Yeah kid. Long story. Couldn’t find my calling - technically I still do, but on the wealth side of the house - it’s v Hard to make that move back over
I don’t think this was answered, and since I would like to understand it myself, I will give it a shot. If you close your long put leg, but keep the short leg, the most you can still loose is 1.20 but if the stock rallies you stand to recoup all/most your losses. So you can think about this as equivalent of paying 1.20 for call debit spread with short leg at 470. Please someone correct me if I’m wrong.
Please someone correct me if I’m wrong.[/QUOTE] He was telling him it was pointless to roll another deep in the money credit spread on such a short time frame. No catalyst and you’re making a buck and risking getting hit for 9.
atleast you didnt buy the 9/25 500CALL in a roth ira with 12K in it. it was up $1500 at one time... im dead meat. i would absolutely LOVE to sell this bih for 1/2 the $5K purchase price.
If he closes his long put, he will be short a put with unlimited downside if TSLA keeps sliding down. What $1.20?
Well, that's why dest was advocating not trying to repair. As all "repairs" would take on additional risk so it's not really a repair. "unrealized loss" is the worst con in trading / investing
The short 70/80 call spread makes the spread riskless from the current mark (880) and even w/o it you're risking a further 1.20 to make 9x that if the shares rally beyond $470.
destriero is right on here. why fix a loss when you can just close it for a loss and move on to another trade instead of being fixated on a trying to fix a bad trade. There are thousands of new trade opportunities every day Why are people so inured on fixing losses? If it sucks, close it.