Stock Repair Covered Ratio Spread Fix a Losing Position with Cash and three growth stocks under $20

Описание: The short calls at higher strikes reduce the cost of the long ATM call (often can be done near zero net cost).
If the stock rallies back to the short strike at expiration, the short calls may be covered by the long stock (up to one short call) and the long call on the other — the net effect can restore breakeven or produce a modest gain even though you started with a loss.
Tradeoffs: upside becomes capped or complicated if price jumps above the short strike(s) (could create assignment risk because you sold more calls than shares owned). Time decay and falling implied volatility help the short calls. (Investopedia)

Step-by-step practical process (US options — broker like Tastytrade / ThinkOrSwim / Interactive Brokers)
Assumptions: US cash account with option privileges for spreads. All options same expiration.
Identify candidate stock position. You currently own 100 shares bought at price = Cost Basis. Example below uses numbers.
Confirm option chain liquidity. Choose an expiration 30–90 days out (or match your outlook). Check bid/ask and open interest.
Choose strikes:
Long call strike ≈ current price (ATM) or slightly below cost basis.
Short calls strike = a higher strike where you’d be OK selling the stock (this becomes the “repair target”). Sell 2 calls at that strike.
Enter the ratio: Buy 1 long call (ATM) and sell 2 OTM calls (same expiration) for each 100 shares owned. Aim for net debit ≈ zero (or small debit) — i.e., long premium ≈ short premium collected.