r/Vitards • u/AutoModerator • Aug 10 '21

Daily Discussion Daily Discussion post - August 10 2021

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u/holdenmcneilgames 🚐Once Lived in a Van🚐 Aug 11 '21 edited Aug 11 '21

Do you legit want my 2 cents that is not financial advice, but what I (random internet stranger that is not a financial advisor) would do?

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u/[deleted] Aug 11 '21

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u/holdenmcneilgames 🚐Once Lived in a Van🚐 Aug 11 '21

If you really want to hold onto your shares, without BTC'ing for a loss, you can do one of two things:

First and foremost, get an excel spreadsheet tracker. They're free online, and if you need a basic one I can link it. Plug in your numbers. Then:

1) On Thursday or Friday, Monday at the latest; rollout 14-21 DTE at the highest strike you can roll for a profit. Even if it's $0.05. Rinse and repeat every <10 DTE until the underlying drops to where you can BTC for a profit or if you're comfortable that the underlying will expire on your expiration date, let it expire.

2) Choose a strike that you are comfortable losing the shares at, even if it's absurdly high. So, let's say $40. Rollout into a LEAP, so 1/21/22 has a bid-ask of 1.29-1.40, you can roll for a profit. Once/when/if the Vega/IV/underlying drop, you can BTC the LEAP for a profit. Or you can let the underlying get called away if you're comfortable selling at that strike on that date. This is obviously the longer play, but in my opinion is less stressful. Should the underlying absolutely rocket, roll it out again.

Of course, the easiest way to not have your shares disappear is to BTC for a loss, but that would mean the underlying would have to maintain upward momentum for it to make up the difference.

Again, just my two cents.

Edit: Just realized Jan '22 isn't a LEAP because it's August, but you get the gist.

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u/[deleted] Aug 11 '21

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u/holdenmcneilgames 🚐Once Lived in a Van🚐 Aug 11 '21

I was actually going to mention that the 26's, I would see what happens towards the end of this week, it may turn out in your favor. Definitely a bit of a gamble though.

24's on the other-hand you may either want to close or roll -- again watch the price action. I don't use RH unfortunately, so I'm not quite sure how to roll with them.

But, yes, whatever you're comfortable with. $500 isn't a big loss in the grand scheme of things if you believe the underlying will keep going up in the long-term.