He is probably on margin and any further drop may trigger a margin call and his broker closes the position. Your idea is good if he can afford to wait it out. Frankly, I had been there, tried all the different "mitigation plans" including roll down, roll out. I came to the conclusion that the best for me was just simply closed it out, took the loss and called it a day.
Can you roll it out to later expiration with a lower price? That seems pretty easy to do when I look at the option chain. For example, you can buy back your option and sell the 5/15 450 strike price for a credit of around 3,000. If you want to roll to an OTM option, you will have to roll a lot further.
You figured all that out he hard way ? How do you know you're talking to an options vermin? They use the word repair There is no repair. Only new bets that either win or lose
How to get out of Tesla short put positon 1) Dont get in it to begin with 2) Find a bigger sucker and sell it to him 3) Flee to Honduras
I'll tell you exactly why turkeys do this The look at the 'high price' of the put, which is elevated because its a (was ,lol) 600-900 stock They think the put buyer is an idiot They have reddit accounts
I am not a pro like you folks. Live and learn. I am an amateur retail. Yes, I learned my lessons the hard way, with tuitions paid to the MM.
That is not how you trade options, you might win a couple of those and take your kicking ass, then suddenly things don't work out and you lose way more than all the ones you've won. If you're going to be selling premium, I highly recommend you do a spread, then at least there's a limit to the pain.