Since WCI was up sharply, I closed out the January $20 Puts. There’s only 2 months left and like someone famously said, “Markets can remain irrational longer than you can remain solvent”. Better to take a small loss now than a bigger loss later on.
I still think the underlying fundamentals are bad so I’ll keep my other Puts and bear Calls in place. I think I should’ve entered into Spreads instead of just selling out of the money naked Calls. That would’ve reduced the premium I collected but it would’ve limited my losses. Of course, I could still implement that strategy, but its going to be a bit more expensive since my out of the money Calls are now in the money.
I expect the stock to wind down a bit going into the long weekend. I might close out some of the March positions at that time.
On the bright side, the in the money naked Puts I sold for a Junior Mining stock will be expiring worthless today!