Do Not Rescue a Long Call Without a New Thesis
Manage a losing long call by separating original thesis, remaining premium, and roll decision.
decision-trail common-trap-callout score-chips The losing call Ben paid $2.40 for a call. It now trades at $0.95 with nine days left. The stock has not moved and the planned catalyst is tomorrow. The danger is not only losing premium. It is adding new premium without a new thesis. Premortem plus monitoring Thesis -> Remaining value -> Fresh decision Manage the position from today forward. The old entry price explains the past; it does not justify the next dollar. Rescue Roll to avoid seeing the loss. The roll becomes a deliberate new risk, not a disguised loss. Only add time or…
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