TLDR; looking for some ideas on how to manage this losing trade.
I’ve learned a hard lesson on a poor mans covered call with Walmart.
I have had a couple shares of Walmart for over a year and felt like it was solid and upward moving for the most part. I decided to try WMT for a PMCC. Not only did the stock drop but I’m learning the hard lesson in premium pricing on low volatility and a stock dropping.
Here are my options I know of
1) roll it out (take on even more risk)
2) take a realized loss (ouch)
3) or hold it for a few more months and let it play out
My LEAPS expires 6/17/27.
Pretty soon at these terrible premium prices I’ll be losing more to theta than I make in covered calls.
Thoughts on management options or if there’s another play I haven’t considered?