Also never hold onto a losing option position for long.Best to sell it and take small loss than holding onto it expecting the option to rebound.Chances is that it may not recover and the stock may have to move higher to even break even on the option.Best you sell the option at a slight loss and either take the opposite position (eg if you had bought a call and the stock tanks,sell the call and buy a put on the same stock)or buy the option again if the stock moves in the direction you desire.I learnt that the bitter way holding a losing option trade and watch it degrade massively