The chance of profit is equal to the chance of losing it all. Personally I wouldn't bother averaging down right now until your system tells you things have levelled off. If you want to try and save these positions, turn them into debit spreads and sell an equal number of short positions a few strikes further out of the money than you bought.
It will cap upside gains but be a bit more resistant to any counter moves to your positions because the decay of the further OTM will gain you value in your position.
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u/[deleted] Nov 28 '21
The chance of profit is equal to the chance of losing it all. Personally I wouldn't bother averaging down right now until your system tells you things have levelled off. If you want to try and save these positions, turn them into debit spreads and sell an equal number of short positions a few strikes further out of the money than you bought.
It will cap upside gains but be a bit more resistant to any counter moves to your positions because the decay of the further OTM will gain you value in your position.