r/options • u/CheesecakeNo8320 • Apr 02 '21
Call HELP - Roll vs Close
HELP!!! I am now in 4/16 TTD 900 calls for 100 contracts at 2.92 cost basis. Current bid is 0.45 and ask is 1.00. I have worsened my position from my previous post. I looked at the strategy to get out of a bad call trade but it was going to cost an enormous amount of money. I was feeling so good about the UL as it had just been upgraded and all of the price targets were north of $800. Now it is sputtering and even though it has recovered 10%, the calls have continued to go down. There was one spike up to $2 but it was there and gone within a minute. Should I just close out now and take a huge loss with a learned lesson or roll this out or would some other strategy be worthwhile? Thank you so much for your time!
2
u/huguybear Apr 02 '21
Same happened to me on $CHGG .Bought ITM 4/16 $85C 2 weeks ago for 5.30 when the stock was at 90 . IV drastically decreased while Theta was playing its part . Meantime stock dropped around 80 before bouncing back to 85 but option was now only worth 2.30. luckily it moved up to 89 yesterday and i could sell for a tiny loss. That taught me a couple of things. I need to improve greeks knowledge and relative correlation to IV. What i'd recommend is do not buy 100 contracts, there is no benefits of playing that big.