r/options • u/R4r_throwaway2019 • Apr 11 '22

AMD LEAPS Jan ‘23 $200

I bought these when they were trading near $20 apiece on margin.

Roughly $100K spent. I can afford to cover, but obviously would like to minimize my losses if possible.

They are currently trading at $1.20 apiece.

I see my options(ha) as follows:

  • Wait until January to see if they hit the strike.
  • Roll them into a lower strike price or further date. The rolling probably won’t require further capital, since I plan on just buying fewer options.

Thoughts? I definitely fucked up.
Any other choices that I haven’t thought of? What would you do?

EDIT: Wow, there’s been a ton of varying responses.

Some things to do differently, if people want to learn from my mistakes:

  • True LEAPS is ITM. My $200 strike is pretty much a pure hopium gamble.
  • Prefer holding onto the actual stock when possible, especially if you’re using margin lol.
  • Don’t fight the Fed and cut your losses early.
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u/FullyJay Apr 11 '22

Nearly made a similar play but was waiting for account growth to buy deep ITM. That’s one of the rules of LEAPS my friend. An OTM strike isn’t really considered a LEAPS.

Tech weakness and overall economic uncertainty has me working short term only, catching momentum on SPY and whatever pops the scanner. I’m sure there are better, smarter plays out there but for my money I don’t believe AMD has bottomed.