by observing the timeline leading up to the trade.. and the "wording".. It sounds as if there's just way too much exposure to going from 1.60 to 0.10 (or 0.05)
Why and how do you want to trade ASEI? It is in downtrend after missing its earnings target in May. It is thinly traded as a stock and it has low open interest. It is followed by only 7 analysts (3 strong buy, 1 strong sell).
you are right... but I'm not in any hurry. however, if this one trades near 47-48 I am going to enter either stock and hold some back month puts OR calls then leg into a higher strike at 2/1 ratio OR backspread with +55c/-50 or +60/-55. All depends one whether market firms up and gains some traction. since it is in a downtrend - how would you trade it from the short side via options?
Lately I trade exclusively short term (1-10 days), so I'd buy one strike ITM July puts. But ASEI's chart doesn't inspire me. Backspreads and calendar backspreads need a larger move to become profitable. I don't like them.
I am sorry that his position does not look good. Option trading takes years to master. Greed got him in the mid-May when AMD gap up big time. Maybe he does not know big gap up day like that with heavy volume could be signaling reveral. Time like that was a good time to take at least partial profit to get the capital back first. The second day was to close the rest when it reversed on the daily chart. That way he can live for another option position. Money mangement is so important!
big whoop, he lost 15k+, he was doin' great before this trade wasnt he...maybe already accumulated 100s of k-profits,...cough*-m-maybe...[?]