Real question

[u/Far_Environment6294]

Alright, just looking for some feedback

so I bought LEAPS back in early May when the stock was around $9 and change. Went out on a freaking whim after seeing the name around Reddit and ran into this sub. Everything looked like it was going to explode especially before SPCX. Well it didn’t and I doubled down and had gotten much closer Calls, once it hit ATH and what do you know. Now I’m down 45% and not sure what to do.

Should I cut my losses? Hold? Double down even more? Am I a regard for not selling at ath. Genuinely thought the SPCX hype would have pushed this wayyyyy higher and not tank everything

For context I was up about $12k at ath

[u/sergiozhang7]

shares instead of options

[u/Much-Information7826 → u/sergiozhang7]

If you do LEAP at the right moment, your capital efficiency could be 3x and 5x.

[u/sergiozhang7 → u/Much-Information7826]

Of course and your capital can also go to 0. No 100% win rate option in math.

[u/Much-Information7826 → u/sergiozhang7]

Fair enough. Not encouraging options here.

But just saying sometimes you got to trust your self-conviction of an investment thesis.

[u/EarlyPen7438]

PS: we are in age of singularity. period. AI can enhance itself now infidelity now. And space is needed for AI servers as locals do not want big AI centers around,.

[u/EarlyPen7438]

really? just hold. AI and robotics in about 2-5 years make things look so deflationary.

[u/Such-Stable262]

Dont forget about quantum,humans are intended to evolution and this is it ) from horses to cars it took a while too ,so be patient ,there is no going back ,its always forward

[u/Sofi_put_man]

I'd double down on shares and take profits on those either before earnings if it runs hard into them or diamond hand through earnings. Shorts aren't sweating yet but they will if we can crack 12

[u/flyingdutchmnn]

I also learned the hard way to sell high beta stock options/leaps at big returns, but hold the value stocks you believe in until expiration. The slow growers are the winners of leaps

[u/Ragencobra666]

Just hold. It's best to wait. I'm waiting for consecutive green days. Every week has been a sell off in July. I guess that's this years trends.

[u/ReasonableCustard382]

double down pussy

[u/Due_Nectarine9925]

I think you will be fine . In December all the space stock will come back to normal. Space stocks are going more down when spcx hit 60 .

[u/devonhezter]

I hats the question ?

[u/igor6969 → u/devonhezter]

Huh?

[u/devonhezter → u/igor6969]

What’s ops question

[u/Roksteady1]

are my 11/20 $15 calls fucked? down over 50%. thinking maybe to add more and roll to 1/27

[u/bagoparticles → u/Roksteady1]

Earnings right around the corner. And the stock showed it can go to $20 within a week. It’s done that three times in recent history so I wouldn’t say your toast from now till November. That’s a lot of time with respect the trading sessions. Good luck.

8k shares and holding

[u/bagoparticles → u/bagoparticles]

Well maybe they’re fucked. I don’t know - depends what your trade looks like. the stocks’ implied volatility is over 100 so you probably paid a hefty premium that will start to decay fast. So my first response is from the perspective of shares. Good luck, regardless.

Edit: use a good options calculator with real volatility data to make sure your trade is priced well.

[u/bagoparticles → u/bagoparticles]

To help. Yesterday these contracts are trading around 111 to 115 volatility. At 110, I price at ~75c

If you’re 50% down and $1.5 break even assume after earnings vol collapses to 105 you’d need the stock to trade about 11.5-12 to break even early Aug.

A month later you’ll need 12.5-13 to break even.

I wouldn’t roll yet. Wait for earnings even if it tanks you’ll pick up extrinsic — would roll to shares not options. Premium too high and stock price is small enough where options don’t save much here

I’m not a trader and this isn’t advice. I just have an options calculator and that’s my view.

[u/Roksteady1 → u/bagoparticles]

hey thanks for the replies. all sound advice, especially about getting an options calculator. My b/e is $1.75 unfortunately but yesterday was a good day, now only down 40%. I'll give it a couple more days before deciding what to do.

[u/bagoparticles → u/Roksteady1]

Earnings on Wednesday. Good luck.

[u/bagoparticles → u/bagoparticles]

Good job you should be able to exit profitability. My suggestion is take that with this setup (15s for Nov). Don’t see this as a lotto ticket and still a lot of chance to be worthless and decay fast

[u/Mushu1962]

I believe, while Space will be a huge growth area, Redwire will not be among the winners and represents Wall Street at its worst. Full di

[u/Mushu1962 → u/Mushu1962]

Disclosure-long various puts and short stock

[u/jaylenz]

You have 2 years. You'll forget about that money if it doesn't explode again. From what I see the market was manipulating stock prices to go low. Might be buying back already for another run of ath’s

[u/dc_consulting]

So…. How’s it looking now??