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John Smith

Edited 06 Feb 2022

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Hi Peeps, I sold a CSP on FB at $280 expire 18 Feb 22. With its current dropped to $230+, what should I do ? Will the option be exercised ? Thanks

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Not a financial advisor

06 Feb 2022

Exercise and sell cc or wait till it recover lol

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Jovan Lai

06 Feb 2022

I believe CSP should only be used on stocks you already want to own at that price. I wouldn't deal with it any different than owning shares of FB and then having it dropped.

If you want to reduce losses but don't mind still owning the shares at the end of the way, I believe rolling it out for a longer DTE is a decent choice.

I believe it would reduce more losses than selling CC at $280 because the strike is quite far away

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Tan Choong Hwee

Edited 06 Feb 2022

Investor/Trader at Home

Whether the put options is exercised depends on the buyers. Some may just sell the put options to po...

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