Sold credit put spread on Visa - 3% drop today - Get out or stay til 18th?

[sss3d]

There was a big 3% (twice the standard deviation) drop today
since senate announced about capping the income of credit card company transaction fees.

I just sold puts for Visa, at $72.50 when the price was around $78. Now VISA is at $77.23.

The puts expire on the 18th of June.

Do you think I should get out now at a loss of $589 (on invested $5000) (since things could get worse) or since already,
things may have calmed down, and by the 18th, everything will be okay?

If I wait til June 18th, I will profit $250 if it doesn't fall below $72.50. but if it does, I could get margin called and lose up to $5,000.

Or do you think there will be a dramatic loss over time?

 

[peter66]

I think that is not much drop and you should expect this.

 

[derivstradaa]

that doesnt look like great trade management. This trade has a horrible risk/reward ratio.

 

[jontyxxxx]

You were here to take risk, so run the position.........you don't make money for nothing!!