If you want to slightly lower risk of having to buy more stock then the put strike should be lower than the current stock price. Since this stock is nearly 30% below where you bought it, you will have to go far out in time if you want to sell a call far enough above the current stock price to avoid a locked in loss. The risk here, like others have said, is if this stock keeps going down you will just keep going further in the hole. If you are confident it will go back up, eventually, you may be able to get your money back. A less risky thing is to not sell the put, just sell a long term call at a strike that will get you even if assigned. You can also use a "stock replacement strategy" if you want to maintain a bullish posture, but reduce risk. If LEAPS are available you can sell your stock and buy a near the money call that is a year or more out in time. But seeing how it has dropped nearly 30%, just selling and moving on may be the way to go. Stocks that hurt you like that can just keep on hurting you. Also, since you don't seem to be that experienced with options now may not be the best time to learn about them. Good luck.
I think you can read up on Robert Carver's books (Systematic trading and Leveraged Trading) to see how he size up his positions. I also wrote a medium article on volatility targeting but this is more at the portfolio level. But could be useful for you (unsure if elitetrader will block it) https://bit.ly/35By5zH
Thanks everybody for your contribute. Sorry for my previous example, it wasn’t real. The original buying price is 15. Now the actual price is near 15. True strikes available are shown in the link https://www.borsaitaliana.it/borsa/derivati/opzioni-su-azioni/lista.html?isin=IT0005366767&lang=en Can I sell a call in December at 15,5? Is it the best available strike to sell I can choose now? I think the price could be over 20 in 12 -18 months, but in this situation now (looking at available strikes), how could the selling of straddle or strangle be structured?
You may not like this answer but there's absolutely nothing you can do. Negating a loss is in finance what a perpetuum mobile is for physics: a pipe dream and physical impossibility. If you adhere to the quantitative theory in finance then expected value of a stock price at any moment in the future is exactly the current price of the stock. What does this mean for losses? Well you bought stock at $15 and now the stock has dropped to $14. You have a realized loss of $1, and from now to infinity, on average, the stock will remain at $14. So keep the stock, sell it, buy more, fuck it, run spells on it, no matter what you do, on average the pnl you will realize from now on is zero on future stock position, plus what you already incurred so the loss of $1. ** You can think of "quantitative theory in finance" as "playing a slot machine in Vegas". You lost money on it, what can you do? Well the Vegas casino is more honest in that doesn't induce the masses to believe there's some magical trick they can pull to win the money back and then some more. But dudes playing the stock market slot machine are mostly believing precisely that.
I wouldn't try to do options until you've gotten risk-management with stocks mastered first. Due to leverage of options, you could've lost over 50% of your position.
Ciao investing per rispondere alle tue domande ti consiglio di guardare i nostri video su www.sunnymoney.it A breve creeremo una sezione in opzioni su azioni con strategie anche di riparazione degli errori