You may wish to re-examine your selling strategy if you didn’t expect the shares to be called away. What is your plan B when that happens? Well, if you’re long COIN, one sensible strategy is the wheel with a good price point. So start selling CSPs. March 24th CSPs at $45 are selling at an attractive 1+%. Earn while you’re waiting. Bitcoin is so volatile that you may well hit the price point anyway.
I wouldn’t be purchasing COIN contracts: For me, it fails on a number of important points. #1 the company isn’t profitable; #2 bitcoin is ATM a limited scenario currency; and #3 it doesn’t meet my pf limits *(yet)* ie. a position in COIN is almost double my position limit. So … that’s my analysis.
One of the points that annoys me in my own ownership of stocks is the idea that I have to hold on to shares, except when they peak. I guess it’s FOMO. Well, congratulations you made money… you didn’t sell at a loss. Either way, time to move on!
One presumes that you are looking at stocks under $50. Well, these are the basic weeklies between $5 and $50 with a positive P/E as of January 13th. To find a suitable option, you’d need to put them through a screener. I prefer to pick from a much shorter list of contenders. I never sell anything below $10 or above $30. I try to avoid earnings (though I often fail). I say away from things I don’t understand (like Bitcoin or hot trends)
Without knowing the details, I don’t think you’ll get any helpful responses. If your losses are small, selling out of the money calls might help to net a few $$$ to bring back to $0 or retain holdings.
If your losses are bigger, go out further in time and sell closer to ATM in the hope they don’t get assigned; and you can sell another CALL.
If your losses are much bigger, then … you may have to find other ways to mitigate the losses: Averaging down on stocks you want to keep, Sell outright and harvest tax losses, selling much further out CALLS, or buying PUTS with a much lower cost basis. You may have to sell regularly to claw back some each time.