Bought PUT Leaps and am currently down 3k. Kind of sweating a little bit and wanted to get some input.
Here’s my position:
SPY March 19, 2027 $760 Put
Bought it for $34 ($20,400 total)
Current stock price: $773.82
Current option value: $29
Current P/L: -$2905 (-14%)
Delta: .3760
Theta: -0.0637
Vega: 2.25
About 7 months until expiration (March 2027)
Bought Put Leaps ITM after SPY had a decent rise thinking its gonna pull back some. The plan was never to hold long, the Leaps was really just to be on the safe side with a good time till expiration. I was going to sell once the underlying dropped like 1% or so. Now im down about 3k already.
Are the current stats promising in terms of recovery and going even at the very least.
Posted by BringTheFood
4 Comments
Did you have a plan for the market rising?
Throw it into optionstrat or similar and see how you feel. Would you make this trade now? If not, dump it.
You can sell short duration puts against it. Poor mans covered put.
Oof SPY goes up unless there’s something specific pushing it down, which IMO right now is nothing. Just because it had a decent rise doesn’t mean it will pull back. Sounds like your strategy is hope.
LEAPS are always 1 year minimally for a reason. You just bought ITM calls with rich IV after they rallied towards a local top and than declined and are looking to chop in the short-term. I think you’ll be fine as long as you don’t get greedy if they rally quickly again past the point the underlying was trading when you first bought the contracts. I’d give it a couple months, but before late Sept is where I’d want to close or roll honestly.
If you wanted it short term why would you pay the excess premium for leaps?