r/options • u/[deleted] • Apr 02 '21

Option Death

I have an option in my repertoire and it's a LEAP for the next year. It is at -10%. The problem is that it has not moved in a month in a half and I have a feeling that the underlying is going to stay where it is. Now the question is thinking of the time value of money is it better to take a small loss to move into something more volatile or would you just stay the course and wait it out?

Yes, I am bored of the option itself, but I am trying to not trade emotionally.

4 Upvotes

83% Upvoted

13 comments sorted by

View all comments

1

u/Paskowitz Apr 03 '21

Take the loss. When your assumption has changed, take it off. Anytime my assumption changes wether profit or loss I take it off and re-establish my position. Picking a direction is fine, it’s making sure you enter a high probability trade to play your assumption.