lazy_eyed_ladykiller
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Hey guys I believe this is the right place to ask, but please feel free to move if it doesn't fit the criteria. I used to trade purely 3-6 months options and equities over a long period. I have been at it for about 6 months. After making some money and losing some money along the way, I started exploring some advanced strategies. Slowly I have been playing with straddles and strangles and have made some great returns. Well, my newbieness got the best of me yesterday and I initiated a strangle on an earnings report for TSLA. I should have known the sellers had priced in a move already, and despite seeing the high IV, I still went long on a strangle and paid the price this morning. In hingsight I should never have played this, but c'est la vie.
I went long 1 Nov 22 247.50 call for 6.80$, and 1 Nov22 227.5 Put for 12.10$. I strongly believed TSLA was going to miss the ER and so my put was ATM (TSLA closed yesterday at 230.00$).
This morning, much to my dismay, TSLA beat earnings and it surged up to a HOD of 246.00$.
My options of course got the IV crush. My put went from $12.10 down to 2.60$ at one point before closing at 3.60$. My call went up to a high of 7.50$ before closing at 4.85$ (TSLA closed at 240$).
Throughout the day TSLA was moving completely sideways with both of my options OTM, with the call becoming close to ATM. Unfortunately this sideways action ensured a roughly $1000 loss no matter which one I would get rid of. Basically the worst case scenario happened, and TSLA landed in the deadzone.
On the daily chart, it does not look as if TSLA will gap fill up, but may keeo going down to the 220s$ in the coming days. I decided to keep my position open until at least one of the options go deep in the money before Nov 22nd. But now I am worried if I made the right decision. As theta is going to kick in strongly in the coming days, and I am worried the market makers will ensure a continuous sideways action tomorrow as well to close out the Nov 7th options.
I am at an impasse. I could have sold one option and hoped TSLA continued in the direction of the other, but I could not pull the trigger. No matter what action I would taken today, I was going to lose 1000$ (roughly).
I immediately attempted to get rid of my put this morning at market open, as TSLA went to a LOD of 229$ , but I due to the crappiness of my broker, I could not refresh the bid and asks and could not see the price of any of my options! their trading desk also did not return my calls. This is the last trade I make with them (Virtual Brokers). If I had known the put opened at 5.60$ today, I most certainly would have dumped it, and it would have greatly lessened my loss as the call gained some value. Only at 9:50AM was I able to see the opening price and the prices in general, by the time, I was pretty much locked in 1000$ loss.
Please give me advice as to what to do. Should I keep this position opened tmr and perhaps next week in the hopes that one of the options will go ITM and I can lower my losses, or close it tomorrow ASAP as it is a lost cause?
Thank you.
I went long 1 Nov 22 247.50 call for 6.80$, and 1 Nov22 227.5 Put for 12.10$. I strongly believed TSLA was going to miss the ER and so my put was ATM (TSLA closed yesterday at 230.00$).
This morning, much to my dismay, TSLA beat earnings and it surged up to a HOD of 246.00$.
My options of course got the IV crush. My put went from $12.10 down to 2.60$ at one point before closing at 3.60$. My call went up to a high of 7.50$ before closing at 4.85$ (TSLA closed at 240$).
Throughout the day TSLA was moving completely sideways with both of my options OTM, with the call becoming close to ATM. Unfortunately this sideways action ensured a roughly $1000 loss no matter which one I would get rid of. Basically the worst case scenario happened, and TSLA landed in the deadzone.
On the daily chart, it does not look as if TSLA will gap fill up, but may keeo going down to the 220s$ in the coming days. I decided to keep my position open until at least one of the options go deep in the money before Nov 22nd. But now I am worried if I made the right decision. As theta is going to kick in strongly in the coming days, and I am worried the market makers will ensure a continuous sideways action tomorrow as well to close out the Nov 7th options.
I am at an impasse. I could have sold one option and hoped TSLA continued in the direction of the other, but I could not pull the trigger. No matter what action I would taken today, I was going to lose 1000$ (roughly).
I immediately attempted to get rid of my put this morning at market open, as TSLA went to a LOD of 229$ , but I due to the crappiness of my broker, I could not refresh the bid and asks and could not see the price of any of my options! their trading desk also did not return my calls. This is the last trade I make with them (Virtual Brokers). If I had known the put opened at 5.60$ today, I most certainly would have dumped it, and it would have greatly lessened my loss as the call gained some value. Only at 9:50AM was I able to see the opening price and the prices in general, by the time, I was pretty much locked in 1000$ loss.
Please give me advice as to what to do. Should I keep this position opened tmr and perhaps next week in the hopes that one of the options will go ITM and I can lower my losses, or close it tomorrow ASAP as it is a lost cause?
Thank you.
