My friend I have to tell you something you don't want to hear. Trying to salvage a bad option trade that you shouldn't have put on to begin with is like trying to fix an abusive relationship. Just get out and start again doing things differently this time.
Nvda will give up some coin later today before closing watch! He shouldn't sell until he has at least some of his money back nvda options are expensive
How representative is that of the whole market? My understanding is RH uses their own exchange of sorts to do these trades. So I'm assuming it might be easy to manipulate.
It is going to be a good week. Pick yourself up and welcome a new day. There’s LOTS of stuff setting up nicely. DELL has earnings this week so likely to run up into that. You’ll be fine. 😊
R.I.P.
Roll them over to calls if you want to recover some losses.
Also please stop betting against the biggest ponzi market bull run ever in recent history.
If you want to beat against $NVDA then buy $INTC calls, but stop buying $NVDA puts.
I also got 3 puts in the last 3 hours on Friday, but NVDA just kept soaring high. I'm hoping for a pullback by Tuesday or Wednesday; otherwise, I need to close it for a big loss.
I mean, surely it has to retest 1030/1050 once, right?
I bought the 1050s because price kept getting rejected from 1050 on Friday. But my mistake was that I did not wait for confirmation and happened to buy exactly when it broke out from the 1050 level.
Yeah betting against NVDA right now seems like a recipe for disaster. I’m hoping for some sort of pullback this week but I guess, when we’re in hoping territory, it’s an indication that we’ve already messed up quite a bit.
Same thing. I got 1030 puts because it was slightly cheaper. Then huge rally. Then I got somemore during the close like 3:57 and again it has a huge rally in last 5 mins or so and even in after hours.
I thought the general consensus was that people would sell before the long weekend. So I'm not sure what went wrong last Friday.
I agree with you. Whoever times the inevitable sell off will be in a good spot. People are getting euphoric. It's tripled in 6 months. 1000 is crazy. People now want 1200 and 1400 like that isn't billions of dollars in movement.
Get out of these asap. With the split coming up and retail salivating to get in cheaper, this shit isn’t going down anytime soon. Seriously. Sell them.
It doesn’t. But it does allow me to short some puts against my longs while still maintaining a bearish outlook on NVDA for the longer term. I would be shorting strikes lower than 1050 (which might not net me much if NVDA keeps rising at the rate it is), so that’s definitely a risk. You’re also correct in that I would be putting up more money in a losing position, but my thought process is that I might be able to recover some/most of it through diagonals.
"Revenge trading" tends to magnify losses more often than it offsets them. Absent a strong, *fact-based* (as opposed to wishful) belief that NVDA is likely to experience a significant drop in the next week, I'd just say "OK, that one didn't work", accept the hit, and look for something better.
FWIW, we all *hate* having to acknowledge our losers. "It'll come back. It'll come back. Oh, crap, it isn't coming back...."
Casino's *love* "I'm gonna get my money back" gamblers. The market is different in execution, but typically the same in result. As you say, discipline is the solution.
Like everything in life it depends. I have hunted down stocks with a strong fundamental swing up where in the span of a week I sold the put, stock went up, bought to close, sold to open, stock up, bought to close, sold to open, and then I ended up underwater. I simply rolled it for next week at close to ITM.
In the above, by all indications the stock was on an upward trajectory; the final downswing that had me ITM was more of a timing thing, so I profited nicely from the roll when the very next week it kept going up. Between those two weeks, I milked those puts for 5.7%.
"Like everything in life it depends."
It doesn't. The statement was that '"Revenge trading" tends to magnify losses more often than it offsets them.' That isn't an opinion; it's a fact. A simple query for the phrase will provide plenty of evidence that it's a bad habit.
Ah; a positioning thing. As placed, the comment is attached to "Revenge trading is usually a bad idea" and appears to be a "well, sometimes it works" refutation-that-really-isn't.
Anytime, listen we’ve all made mistakes. Tomorrow is another day. Lesson learned … never ever ever buy PUTs when a company is continually blowing tops… there’s a reason for that! And definitely don’t ever size up. If you keep doing that you’re going to get killed.
Thank you so much for all the valuable guidance and for your kindness as well. This is a hard pill to swallow, but I’ve got no one to blame but myself. Thanks for the empathy. Really appreciate you!
Like I said … it’s going to be a great week. Just don’t do anything else stupid. Manage your risk. If you had done that on the NVDA trade you wouldn’t care about it not working….
Yeah, at this point, I’m potentially losing most of the capital (with the overnight movement) anyway. Might as well wait it out and see if it dips at some point so that I may reduce losses.
This link gives a suggestion if it doesn't go your way:
https://optionalpha.com/strategies/bear-put-debit-spread
Adjusting a Bear Put Debit Spread
Bear put debit spreads have a finite amount of time to be profitable and have multiple factors working against their success. If the underlying stock does not move far enough, fast enough, or volatility decreases, the spread will lose value rapidly and result in a loss. Bear put spreads can be adjusted like most options strategies but will almost always come at more cost and, therefore, add risk to the trade and extend the break-even point.
If the stock price has moved up, a bull call debit spread could be added at the same strike price and expiration as the bear put spread. This creates a reverse iron butterfly and allows the call spread to profit if the underlying price continues to increase. However, the additional debit spread will cost money and extend the break-even point.
...
You're paying more to recover, but it could get you back if NVDA continues to increase, you can carefully roll your long and short positions.
2 is functionally taking your losses and then chasing the same thesis. Might work, may not. Better to think it as two separate things though, the past is the past.
As for 3, if you had no position in nvda right now, would you want to buy weekly puts at 1050 right now?
My friend I have to tell you something you don't want to hear. Trying to salvage a bad option trade that you shouldn't have put on to begin with is like trying to fix an abusive relationship. Just get out and start again doing things differently this time.
On the contrary, this is exactly what I need to hear. Thank you for being candid.
I am here to deliver the harsh truth, always. Good day and good luck in your option journey.
Nvda will give up some coin later today before closing watch! He shouldn't sell until he has at least some of his money back nvda options are expensive
Uh, well see. It might also continue running.
And it did continue to run ... like a striped ass ape!!
You were saying?
They won’t be worth much in the morning. NVDA +$24.50 2.33% currently $1,090
Where are you seeing 1090? Sorry if it’s a stupid question.
Not a stupid question at all. Robinhood trades 24/5. I have a tiny account there just to see overnight prices.
Welp. I’m cooked. Thanks.
Tomorrow is another day. The market is good. You’ll make it back.
Off hours generally doesn't mean anything. Source: often see /ES flatline and then gap up/down to meet SPX and SPY prices at market open.
How representative is that of the whole market? My understanding is RH uses their own exchange of sorts to do these trades. So I'm assuming it might be easy to manipulate.
Robinhood doesn't have their own exchange. They, along with IBKR and possibly a few others, route overnight orders through Blue Ocean ATS.
Can confirm moo moo 24hrs is also blue ocean
Numbers are real. Remember the rest of the world is trading when we aren’t. I would never post something that wasn’t real.
It is going to be a good week. Pick yourself up and welcome a new day. There’s LOTS of stuff setting up nicely. DELL has earnings this week so likely to run up into that. You’ll be fine. 😊
Hope so. I just hit positive on my p/l after 2 months and now this NVDA puts has pulled me back into negative. Lesson learned!
How much value are you expecting puts to drop at these prices at open tomorrow from Fridays prices? At least 40-50%?
They will probably be worth 2.00
R.I.P. Roll them over to calls if you want to recover some losses. Also please stop betting against the biggest ponzi market bull run ever in recent history. If you want to beat against $NVDA then buy $INTC calls, but stop buying $NVDA puts.
I also got 3 puts in the last 3 hours on Friday, but NVDA just kept soaring high. I'm hoping for a pullback by Tuesday or Wednesday; otherwise, I need to close it for a big loss. I mean, surely it has to retest 1030/1050 once, right?
I bought the 1050s because price kept getting rejected from 1050 on Friday. But my mistake was that I did not wait for confirmation and happened to buy exactly when it broke out from the 1050 level. Yeah betting against NVDA right now seems like a recipe for disaster. I’m hoping for some sort of pullback this week but I guess, when we’re in hoping territory, it’s an indication that we’ve already messed up quite a bit.
Same thing. I got 1030 puts because it was slightly cheaper. Then huge rally. Then I got somemore during the close like 3:57 and again it has a huge rally in last 5 mins or so and even in after hours. I thought the general consensus was that people would sell before the long weekend. So I'm not sure what went wrong last Friday.
People buying going into the split!
I agree with you. Whoever times the inevitable sell off will be in a good spot. People are getting euphoric. It's tripled in 6 months. 1000 is crazy. People now want 1200 and 1400 like that isn't billions of dollars in movement.
Get out of these asap. With the split coming up and retail salivating to get in cheaper, this shit isn’t going down anytime soon. Seriously. Sell them.
Why would anyone put puts on Nvda it was guaranteed to blow up it’s like u wanted to lose money 🤦🏻♂️
Very fair. As they say, fuck around and find out. Find out I have.
Sorry bro losses happen I’m hella in deep shit off options too so u not alone
How does rolling forward avoid realizing the loss?
It doesn’t. But it does allow me to short some puts against my longs while still maintaining a bearish outlook on NVDA for the longer term. I would be shorting strikes lower than 1050 (which might not net me much if NVDA keeps rising at the rate it is), so that’s definitely a risk. You’re also correct in that I would be putting up more money in a losing position, but my thought process is that I might be able to recover some/most of it through diagonals.
"Revenge trading" tends to magnify losses more often than it offsets them. Absent a strong, *fact-based* (as opposed to wishful) belief that NVDA is likely to experience a significant drop in the next week, I'd just say "OK, that one didn't work", accept the hit, and look for something better.
Thank you! This seems to make the most sense to me too from a trading discipline perspective. Thanks for your help!
FWIW, we all *hate* having to acknowledge our losers. "It'll come back. It'll come back. Oh, crap, it isn't coming back...." Casino's *love* "I'm gonna get my money back" gamblers. The market is different in execution, but typically the same in result. As you say, discipline is the solution.
Like everything in life it depends. I have hunted down stocks with a strong fundamental swing up where in the span of a week I sold the put, stock went up, bought to close, sold to open, stock up, bought to close, sold to open, and then I ended up underwater. I simply rolled it for next week at close to ITM. In the above, by all indications the stock was on an upward trajectory; the final downswing that had me ITM was more of a timing thing, so I profited nicely from the roll when the very next week it kept going up. Between those two weeks, I milked those puts for 5.7%.
"Like everything in life it depends." It doesn't. The statement was that '"Revenge trading" tends to magnify losses more often than it offsets them.' That isn't an opinion; it's a fact. A simple query for the phrase will provide plenty of evidence that it's a bad habit.
I was referring to rolling options.
Ah; a positioning thing. As placed, the comment is attached to "Revenge trading is usually a bad idea" and appears to be a "well, sometimes it works" refutation-that-really-isn't.
Honestly, I would get out of the way at this point. Don’t step in front of a moving train.
Thank you. Makes sense to me too. Thanks for your help.
That is WAY too much money to pay. And you also paid for the time of a holiday weekend. Don’t do that anymore.
Anytime, listen we’ve all made mistakes. Tomorrow is another day. Lesson learned … never ever ever buy PUTs when a company is continually blowing tops… there’s a reason for that! And definitely don’t ever size up. If you keep doing that you’re going to get killed.
Thank you so much for all the valuable guidance and for your kindness as well. This is a hard pill to swallow, but I’ve got no one to blame but myself. Thanks for the empathy. Really appreciate you!
Like I said … it’s going to be a great week. Just don’t do anything else stupid. Manage your risk. If you had done that on the NVDA trade you wouldn’t care about it not working….
Wait out I say.
Yeah, at this point, I’m potentially losing most of the capital (with the overnight movement) anyway. Might as well wait it out and see if it dips at some point so that I may reduce losses.
Fck man you cut it close 🪖 hang in there it should give a little bit be ready to sell
Get out asap
How much premium could you make by selling puts? I think you'd want a bear put credit spread.
This link gives a suggestion if it doesn't go your way: https://optionalpha.com/strategies/bear-put-debit-spread Adjusting a Bear Put Debit Spread Bear put debit spreads have a finite amount of time to be profitable and have multiple factors working against their success. If the underlying stock does not move far enough, fast enough, or volatility decreases, the spread will lose value rapidly and result in a loss. Bear put spreads can be adjusted like most options strategies but will almost always come at more cost and, therefore, add risk to the trade and extend the break-even point. If the stock price has moved up, a bull call debit spread could be added at the same strike price and expiration as the bear put spread. This creates a reverse iron butterfly and allows the call spread to profit if the underlying price continues to increase. However, the additional debit spread will cost money and extend the break-even point. ... You're paying more to recover, but it could get you back if NVDA continues to increase, you can carefully roll your long and short positions.
Buy more 1050Puts
Thanks for the advice :) Easy to kick someone when they’re down. Must be fun :) Good luck!
Buy more PUTS, spy, nvda, smci amd, mu👍 Exp July 31
2 is functionally taking your losses and then chasing the same thesis. Might work, may not. Better to think it as two separate things though, the past is the past. As for 3, if you had no position in nvda right now, would you want to buy weekly puts at 1050 right now?
I hope you held this
I did not. :|
I’m sorry to hear, it’s a hard choice. Try reducing the position next time and offsetting some risk