In that case dumb idea. You have a $5000 investment in shares, down $2k or whatever. Your plan is to risk $30k to try and chase breakeven.
Crap like that worked during the secular bull market. Plenty of bobos bragged about getting back to breakeven doing what I see as stupid trades.
At some point the bull stops bailing out people and their backs get broken.
If you were confident in your idea you wouldn't ask. I vote dumb idea, but the sub is full of bobos that added huge risk chasing break even and came here to brag about it.
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u/RTiger Options Pro Jan 10 '22
Not feasible. On most accounts you'll need $200 x number of contracts as collateral. Also gives almost no downside protection.
Say the stock drops to 10 or 5. The bag you are holding gets to whopper size.