I have options ending Dec 2026 for both meta (500 and 700 strike) and msft (450,510,520 strikes). I bought after earnings at different times and bought more on the "dip". I have not used margin but overleveraged and I am sad to say that I invested a large % of my portfolio in these options, which are all now down big time. I am not sure what to do except hold. It doesn't make sense to sell any covered calls since it's down so much. What would you guys advise and when would one start taking action?
Posted by annac156
5 Comments
You bought OTM thats an all or nothing play.
You can sell monthly calls against it .
Better hope earnings are good.
You need to figure out how much money you are comfortable losing. Play with this and figure out the chances of you making some of the money back [https://www.optionsprofitcalculator.com/](https://www.optionsprofitcalculator.com/) and how long would that take.
if I were you, I would look into
1. only buying covered calls or cash secured puts.
2. trade in shares.
Stay away from individual companies. Look into SPY. Do not buy calls or puts or 0dte.
This is rough. I’m sorry. Not to kick you while you’re down but for your “when to take action” question, uou probably needed to do something a long time ago about this
There’s nothing you can do now,if you’re okay with losing the rest of the money(letting them go to 0) I’d say just hold.
Otherwise obvioisly you just have to eat the loss. You’re basically long the “right tail” now (iran resolves quickly, tech earnings for 2026 come in hot, etc) so do you want to bet on that?