The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. Today, we’re going to be answering a question that a member sent in which is basically, “What are my options when a trade goes against me?” I’ll read the question that somebody sent in and that way, it will help bring some context around it and then, we’ll talk high level about what choices you have or options (no pun intended) you have when a trade starts to move against you. They said, “Thanks, Kirk, for the quick reply. I could sure use the Theta right now because APC is hitting me real hard and I would appreciate your take on the situation. I originally sold a 52.5 put and last week, sold a 50 call to hedge, but my breakeven is around 49.25. I keep telling myself it can’t go down 4% to 5% per day every day, but apparently, it can. How do you handle this kind of situation? I was hoping to unload it before the FED talks later this week, but I'm afraid it will be at 40 by then and I’ll lose a couple of thousand. Than