Got a small Nvidia spread that is expiring today and is loser. Not sure what I can do about it if anything. Treating this as a learning opportunity to see if there is something I can do with the rest of the trading day to try and help it. It's a 123/122 put credit spread.
Posted by CrossPlainsCat
2 Comments
Tough situation. Unfortunately, with options, there’s not much you can do to salvage a losing spread, especially on expiration day. You could buy back the short put to reduce your risk, but it will cost you.
Think about your risk tolerance. Are you okay losing the maximum loss on the spread? If not, buy back the short put and take the sure loss. Consider this a lesson learned – next time, manage your options spreads more actively to avoid getting stuck like this.
I’m having trouble understanding. This is a 1 point wide credit spread whatever you were credited your loss is the difference between the strikes Which is minimal?