On September 13, 2021, I closed the second half of the SESN credit spreads and again took the max loss.
A long story short - SESN was trading well above $4 per share about a month ago, but after some negative announcement from the FDA, the stock dropped under $1 per share.
Luckily I was trading credit spreads and not just put options and my max loss was limited to the width of a spread, which was 1 dollar wide.
Now, not willing to take any more an assignment on this stock, I decided to close the remaining 3 contracts
SLD 3 SESN SEP 17 '21 - 4 + 3 Put Bull Spread -1.03 USD
My total loss after closing these 3 contracts: -178.80$
I never like losing trades, and because of them, I have developed the so-called penalty trade, which means - the same amount I'm losing from closed trade I buy some quality stock, and hopefully next time I will be more careful and not engage in bad trades.
Williams Companies or WMB stock is a stock I buy as a penalty trade. The stock is quite stable, it has a pretty awesome more than 6% dividend yield and the best we can trade options with this stock.