Should I take a loss on my naked call now?

Discussion in 'Options' started by nickyang07, Jan 25, 2020.

  1. ironchef

    ironchef

    Did you also look at rolling it out/up and can still collect a premium? If so, perhaps you get lucky and may eventually get out without a loss?

    It really depends on your view of the underlying and if eventually your view is correct.
     
    #11     Jan 26, 2020
  2. LanceJ

    LanceJ

    Stick with your decision that was made when you put it on. You have some cognitive biases messing with your mind. Rolling it into a spread can greatly reduce your exposure. Vertical, horizontal or ratio spreads.
     
    #12     Jan 26, 2020
  3. Thanks for such great analysis! I agree with you. I over allocated, I knew it was bad to sell premium before earning, my original plan was to bet BA will stay around 300 before earning. Now it's very different. Since we have so many bad news today, hopefully, tomorrow BA will sell off at open, then I will get it out, no matter how, I don't plan to stay in the trade after earning.
     
    #13     Jan 26, 2020
  4. Took the loss today at 1.04$. Not too bad, considering it was once over 3.00$ last Friday. Although my original plan my still work based on today market's situation, it's really a bad trade. Any whipsaw towards the long side, I will get burned really bad. I should always have a defined risk before entering a trade, especially for option.
     
    #14     Jan 27, 2020
  5. What strategy you guys normally do for option, long or short the vertical spread?
     
    #15     Jan 27, 2020