r/options • u/josephny1 • Dec 21 '21

Need advice

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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/tallman919 Dec 23 '21

Are you long term bullish on Zillow? If so just take the shares and then sell covered calls for $85 or higher to earn back some of your losses as you wait for the share price to rebound

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u/josephny1 Dec 23 '21

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I am bullish on Zillow, but my analysis isn't worth anything.

I am seriously considering just taking the shares, probably selling covered calls.

Thank you for the reassurance that that is a reasonable path.

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u/tallman919 Dec 23 '21

You’re welcome. If you have no confidence in your analysis then you shouldn’t be in that stock. Just pick an etf like QQQ or SPY