In the spirit of experimentation, I did kind of a silly thing with this position. My dilemma was that KRE was down huge once again and my was back out of bounds at around 60 (I prefer below 50). Normally I either or to reduce my directional risk and collect more The problem is that the KRE options have gotten super which made me feel uneasy about trading them. Meanwhile, has contracted significantly over the past few days despite the continued sell off. I only had a little over $1 of extrinsic value left in my spread. With that in mind, I decided to close the options entirely since I wasn't paying an obscene amount over and bought 25 shares to keep some directional exposure. I will post the 25 shares as a new position to make things less confusing. After seeing it though, I'll admit I'm not sure I like this move and I'll most likely look for an opportunity to revert back to options as soon as possible. For the time being, however, 25 shares slows my risk to the downside as intended and leaves me room to make some money back slowly if KRE rallies.

Yes, my war with KRE is far from over. It's been brutal and bloody, but considering it's fallen over 45% since I first established it, I feel I've done a good job playing defense. Losing sucks but thankfully this position was small enough that no irreparable harm has been done. It'll take me some time but I'll eventually recover these losses and then some. The ultimate moral of the story is that keeping risk small is TRULY the most effective defense against unforeseeable disaster.