I didn't ask for any advice, nor asked for assistance. I just had posted a link that I found on the net and thought it might be interesting for ET readers. You funny folks have really a funny kind of group-thinking. You are right and everybody else is wrong. Yes, got it!
But it doesn't. Adding a ratio spread to a losing trade is in no way any sort of guarantee or "repair". What now?
Man, you need to get your head out of your ass and face the reality like a real trader. So let's pretend that you do exactly as mentioned in your article, which is: But WTF??!! That garbage stock is now trading at $30! Oh wait, I did forget that you collected a measly amount of premium. That must be a real relief.
How do you get $30? It clearly says $50.75. You blind, (wo)man? And: I'm not the author of the article. I just posted the link.
.... and it might take days/weeks/months to repair your broken trades. And as you wait for it to be repaired, you keep on suffering from insomnia/countless sleepless nights. For goodness sake, go cut loss, and move on with life. Full details here [...]
And you're not blind? What makes you so sure the stock will bounce back up? Pros don't dig their own graves. They wouldn't allow losses to grow in the first place. Only amateurs allow the hole to get so big that it swallows them whole.
It's an interesting alternative and it's not perfect for every possible outcome. It's also a viable exit strategy to establish a possible exit price. It's also really interesting when done in CS index options. Nice alternative to covered writing without the downside cushion. It used to be referred to as "Forget the cheese and just get me out of here". You double the move between the two strikes. It becomes especially attractive with OTM skew. If you want to keep the upside then do the fly and pay up.
https://www.elitetrader.com/et/threads/option-repair-remedy.341017/#post-5025135 If you can't think out of the box, then you shouldn't trade options.