I've heard about doing ratio back spreads on losing stock positions to bring down the BE point and was a wonderin' how to repair my terribly injured bull call spread on GG. I was very bullish on gold at the beginning of the month and entered into the spread will conviction so strong that I ignored my exit rules and ignored what the chart was telling me. So here I am bleeding profusely feeling sorry for myself, is there any way to repair this disaster:
29th Nov Bought 2 $30 Jan GG calls @ 2.55 = -$510
29th Nov Sold 2 $35 Jan GG calls @ 0.65 = +$130
Net Disaster at the present time -$380
Those $30 calls are now worth .30-.40 cents.
I could sell 2 ATM $27.50 calls for $1.05 x 2 = $210 but them if GG goes all the way up to $30 I will only have increased the pain. Oh dear, what to do