$APP 20251205 550.0 PUT$ The volatility of the APP Strangle resulted in the assignment of my short call, leaving me with a high-risk naked short position of 100 shares at the $600 strike price, and the stock’s continued rally means I am now contending with escalating unrealized losses and daily interest charges. To address this immediate, high-risk liability, I executed a crucial defensive measure last night by selling a new, lower-strike Cash-Secured Put. This action not only generates much-needed premium income to offset the interest costs and the loss from the original short call premium, but more importantly, it synthetically transforms my short shares into a defined Short Strangle position, which fundamentally caps my potential losses on the downside if the hoped-for retracement occurs. While I still face significant risk from the stock continuing its aggressive rally past the $625 resistance level I identified, the CSP opens up a new avenue to manage the position by creating a synthetic Long Stock scenario if I am assigned again at a lower price, which would effectively close out my short shares at a smaller net loss.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
