Recently i took a put sell position on stock and incurred loss. So while i see that put sell is going red, what opposite position can i take to balance the trade even 1 to 2 weeks down the line ?
- Sell a lower strike put option.
Or - Buy a put option at or near the money.
Or - Buy the underlying stock to offset the short put.
THIS IS NOT INVESTMENT ADVICE
Buying underlying stock to offset the short put makes more meaning than others. Considering put option OTM ( in loss ) till expiry.
Am i correct ?
Yes, this is considered a cash secured put. Make sure you have sufficient cash balance on E-1 to take delivery of shares. Next month, you can write covered calls at strikes above your cost basis with those shares after pledging them. 