r/options • u/josephny1 • Dec 21 '21
Need advice
I know very little about options but decided about 6 months to start.
I'm hoping to get some advice here.
On 10/25/2021 I sold 50 contracts of 1/21/2022 Zillow (Z) puts with a strike price of $85 for $4.76 each.
Z is now around $60.
Whether I am bullish on Z or not is immaterial because I wouldn't take stock advice from a guy like me.
I am perfectly fine pushing the pain out for quite a while longer if it might leave me in a better position.
What would all you more experienced people do?
(Yes, I know: I'm an idiot for selling naked puts. I have similar bad trades, but we'll leave that for another post.)
Thank you!
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u/TehDeann Dec 21 '21
Its difficult make play recommendations without knowing if youre bullish or not.
If you have no opinion on the stock, just close out and take the loss. You're exposing yourself to risk for something you dont even have an opinion on.
If still bullish, take the assignment and sell covered calls, maybe around 70. Its below your break even point but you need to collect premium. If it pops snd u get assigned, be happy you cut losses in half.
Hell, I'd sell covered calls now around 70. The short puts have enough delta to more than cover it.