I had picked up AMD PUT 134 ba

I had picked up AMD PUT 134 basis 06/09 hoping for some stability. AMD was at 139 when I bought it 3 days before expiry

However on expiry day the stock plummeted below my strike price. Knowing I will have to sell off to prevent assignment, I bought another put at a high price and thus averaged out te price . First put was at 1.22 and the second at 7.0, thus reduced losses As I sold at 5.30.

This strategy was new to me but I am sure experienced options players know it.

Also I had another put taken at 130 but luckily that held, for the same day. That was 0 day just to reduce losses and was taken at 0.1 USD.

Modified in.09-08

What Pitfalls Have You Encountered When Trading Options?

There are common pitfalls like Lack of basic knowledge about options, Excessive leverage, Ignoring time value, and Insufficient risk management. Share your experience with tigers to help beginners!

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