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The timing could not have been worse. By the time of expiration, the stock had climbed to 107 and it was just too pricey to buy back the option. Plus, I had the suspicion that the price would ease off after a fast climb. So I just let the contract assign and the shares were called away at 90, giving me a profit of just under $1000 (and a "lost profit" of about $1700). Which is painful, but as pointed out, not as painful as an actual loss.

My hunch has played out - as the stock has now dropped to $100. If it had been at 100 4 days earlier, I might have employed your strategy. But now I have the money in my account and I want to get back in.

I'm thinking not buy the stock this time, but rather set up a diagonal or maybe a synthetic long. Any thoughts?
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