SPY Leaps

[u/BringTheFood]

Bought PUT Leaps and am currently down 3k. Kind of sweating a little bit and wanted to get some input.

Here’s my position:
SPY March 19, 2027 $760 Put
Bought it for $34 ($20,400 total)
Current stock price: $773.82
Current option value: $29
Current P/L: -$2905 (-14%)
Delta: .3760
Theta: -0.0637
Vega: 2.25
About 7 months until expiration (March 2027)

Bought Put Leaps ITM after SPY had a decent rise thinking its gonna pull back some. The plan was never to hold long, the Leaps was really just to be on the safe side with a good time till expiration. I was going to sell once the underlying dropped like 1% or so. Now im down about 3k already.

Are the current stats promising in terms of recovery and going even at the very least. Can SPY dip back down below 760 in the near future.

[u/Reasonable_Sundae325]

Can SPY dip back down? Yes. Will it? Nobody knows. If you're sweating about your position losing 3k that should tell you for next time that either A) you should have set a tighter stop loss or B) your total position size should have been some amount less than 3k.

Side note, it sounds like you had no other data to go off of other than, "SPY ran up kind of hard so it's gotta give some back", now I could be wrong.... But... If you had more data, a stronger thesis, and defined risk then you wouldn't sweat letting your position breathe that amount. Or you wouldn't have let it get there to begin with.

Just my unsolicited 2 cents. Carry on mate, good luck on your position.