No. of Recommendations: 1
If this is not a good time to buy, then why roll? Why not sell the existing positions and wait for a fat pitch?
Not speaking for Jim, but it seems like many option holders think that if an option is at a loss, you can "repair" it by rolling it. Google "options stock repair strategy".
They feel that it is extending the (losing) trade, instead of what it actually is -- closing the old option and opening a new option.
Whenever I have rolled an option at my broker you enter the trade as a roll as a limit order with a net debit/credit. Either rolling a winning option or a losing option.
Then when you look at the filled transaction it is two transactions, one is a sell and one is a buy.
It's the same category of thinking that says a stock is not a loss as long as you don't sell it.
Which is the way my long-ago investment club rode a stock all the way down to 7/32 ($0.219) before we finally sold it.
But then again, I have not done 30,000 option trades, so what do I know.
