Re: [TheOptionClub.com] Re: do not want to lose all my money!

 

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From: comedynight2000 <comedynight2000@yahoo.com>
To: OptionClub@yahoogroups.com
Sent: Wed, February 10, 2010 4:12:38 AM
Subject: [TheOptionClub.com] Re: do not want to lose all my money!

 

If I understand correctly, this is a March option, not February, so there could be further losses before March expiration. I suggest buying a higher strike put such as the 1200 to prevent further losses. Then sell further OTM put verticals or call verticals to bring in some credit. They don't have to be sold one to one. For example, if short one 1150 put, you could sell two or more OTM call or put verticals. If SPX were settled with shares rather than cash settled, then Nick's suggestion is good, because you could simply accept assignment and receive shares, abd sell covered calls against those shares. However, since SPX is cash settled, the best alternative is probably to stop the bleeding by buying another put (there is no limit on on how far down the market could move between now and March exexpiration) . Note that you could sell some OTM verticals in the February expiration. In the future, you have to have an exit plan in advance..... Joel

--- In OptionClub@yahoogro ups.com, "paul7313" <paul7313@.. .> wrote:
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> some time back, I sold a put spx 1150 strike march. the market fell to now and I want to buy it back so it doesn't get exercised. any advice will be greatly appreciated.
>

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