Repair Strategies for In The Money Options

An investor wrote in looking for some repair ideas for a position caught in the recent sell-off. They are holding a large position of the TQQQ ETF which has fallen dramatically over the past couple of weeks and left the investor with a potential large loss.

Investor Questions

We are currently holding 1400 shares of TQQQ and it’s about 20% of our portfolio. Cost basis is 80$. Other than taking that loss and living to see another day, we want to keep selling covered calls and making some income until we are able to get out of it. Any advice here on how to approach selling covered calls or do you have any other suggestions on how to get out of these shares without a big loss? Based on your outlook of NASDAQ and current situation, do you think TQQQ will get to $80 in the next few months.

From: S.M.

Some Answers

This strategy article is for members. It presents 6 repair strategies for an in-the-money share position where an investor is looking for methods to continue to earn income or return the trade to a profit to close it.

This article is 2600 words in length and will require 6 pages if printed.

  This strategy article is for FullyInformed members.

6 Repair Strategies For In-The-Money TQQQ ETF – Investor Questions

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Please read the full disclaimer.