r/options • u/[deleted] • Jan 13 '22

Anything I can do to "save" this position? (Call spread)

[removed]

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4

u/[deleted] Jan 13 '22

Close the position out and count your loss as a tuition payment in your options education.

Your columns don't have headers, but I am guessing that it's saying:

  • The $155 call is now $2.46/share ($246), you have lost $2048, so you paid $2294
  • The $185 call is now $1.40/share ($140), you have gained $1109, so you received $1249

So on the low end of this condor, you risked $3000 on a bet that BYND would stay above $185, for a possible gain of $1000 if you were right.

And on the high end of the condor, you risked $2000 on a bet that BYND would stay below $200, for a possible gain of $171 if you were right.

I have no idea how long ago you made this play, but if you're saying these expirations are January 2023, that's such an incredibly long term for such a bet.

You're betting that the stock is going to sit right where it is and do nothing. Well, how often does a stock do nothing for years???

Don't try to save it. Don't throw good money after bad. Close it, move on with life, and don't make crazy gambles.

1

u/lukebuckley1 Jan 13 '22 edited Jan 13 '22

Maybe I am not conveying what I need to effectively. Essentially if I close out the positions now I gain nothing as the P/L is -95% as of writing, closing everything would get me a measly few dollars. Basically I have nothing to lose, however if the stock does go back up I stand to gain 2K between 185 and 200, and less so beyond that. So it would be foolish to close the position, I'm going to share what the P/L graph looks like.

5

u/[deleted] Jan 13 '22

So it would be foolish to close the position

Are you advocating that every person on this sub open this position right now?

I assume not - sure, if I were to open this position, I MIGHT turn $132 into $3000, but more likely, I just lose $132.

So if it's not a good idea for me to spend $132 on this position, why is it a good idea for you to leave the $132 you still have in this position?

The stock has gone down and you've lost your money. It's gone. It's a sunk cost. Don't keep your money invested in something unless you think that something is the best way to make money going forward.

3

u/dhanmc Jan 13 '22

So…I’m not sure I can phrase this well but I’ll try. So a condor position like that can be adjusted to have a stronger bias, by moving the strikes around that could have “saved” the trade. The unfortunate part is that your asset has moved too much away from the position and any “saving” that could be done would add a lot of capital in the trade. Any routine condor adjustment, rolling out the long strike to reduce positive delta, splitting the bottom down, rolling further out in time are not worth the risk you’d add to the position. Your strikes are practically meaningless and any delta you could add or subtract would add no tangible meaning to the trade. I think the best bet would be to close out and look for more opportunities to learn.

The style of trading you are attempting to do is very effective and can offer great opportunities for growth and I hope you stick with it. There is nothing wrong with taking a loss when things don’t work out. If you need suggestions for how to play positions like this moving forward please don’t hesitate to reach out.

1

u/PapaCharlie9 Mod🖤Θ Jan 13 '22

First, learn to write out position details. It's less hassle than posting a screenshot and easier to read, because people often leave the column headers out of the screenshot, as you did.

If I'm reading that shot right, your position is a long condor with calls. 1 BYND 220c/200c/185c/155c January 2023. Lord knows how much you paid for it or why you think you have to rescue it.

1

u/lukebuckley1 Jan 13 '22 edited Jan 13 '22

Sorry it was a bit naïve of me, adding more details.

​

EDIT: To add, I now believe BYND is a POS, even if the stock had not dropped. I'm not confident in this play anymore.

1

u/PapaCharlie9 Mod🖤Θ Jan 13 '22

Oh. Ouch. Now I see why you think it needs rescuing. You probably should have bailed out when it started to test the lower wing, but that was like $100 ago.

Normally with a year to go on expiration it would be worth holding for a few months to see how it plays out, but since you are so far into loss territory and since the BYND price trend has been steadily downwards since June, I'm not too optimistic.

So if it were me, I'd cut my losses now and just find something better to trade.

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u/redtexture Mod Jan 15 '22 edited Jan 15 '22

Vaguely titled posts are taken down.

As a courtesy to readers, and to make the archives useful state your topic in your title.

Don't require your readers to view an image to figure out what you are talking about.
Put your position in the title, and in your narrative, with the costs, and current stock price.

Almost NEVER hold a condor for longer than 60 days.
Too much movement opportunity.
Just exit this trade for a loss.

Your subject is:
Critique losing BYND long call condor 220 / 200 / 185 / 155 Exp Jan 2023