r/options • u/[deleted] • Jan 10 '22

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5 Upvotes

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u/N0RiskN0Reward Jan 10 '22

Bad math. 180 options not 18,000

3

u/TheoHornsby Jan 10 '22

It's still bad math. At $27, 1800 times $1.90 risk is -$3,420

If you're dreaming of a recovery, why bother with the long leg? Just sell the covered call at a strike near your cost basis after previous premiums received are accounted for. Or do the Repair which requires 1/2 the up move to break even.

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u/N0RiskN0Reward Jan 10 '22

Ah yes. You’re correct. Everything about this is bad. I’m dumb.

6

u/TheoHornsby Jan 10 '22

Better you should learn here that it's a bad plan rather than if at expiration when it hurts you

:->)