Re-visiting My HPQ September 30 Straddle Sale Yesterday

The trade: Yesterday I sold the HPQ September 30 Straddle for $4.13.
Managing the Trade:
The Good: I sold this HPQ straddle for $4.13, and it seemed as if traders anticipated earnings would be good (they were, beating estimates by $0.01). By the close yesterday, the straddle got crushed to $3.15. It could have been closed for ~ a $1 profit. However I left it on, so now I have to figure out how to manage this trade. In addition to earnings after the close, HPQ surprised by announcing some major corporate re-structuring.
The Bad: The straddle I sold in order to take advantage of very high implied volatility blew up in my face. Last night, the stock sold off to $29, then $28, then $25. Mid-day today, the shares were at $23.50. When I purchase equitiy (stock) options at the CBOE, the most I can lose is the purchase price. However, when I sell them I can lose much, much more. So, basically (because of being short the September 30 put for a total credit of $4.13), I am long shares of HPQ stock at $25.87. The stock is broken, but still trades at a very cheap P/E and I think HPQ has more upside than downside. The straddle I sold is currently worth $7.75. I am keeping this position on, leaving it as is and hoping for a bounce back to $26. I am also bullish on the stock market, which could help this position. I if I were bearish on HPQ, I would close this position and move on to the next trade. 

Andrew R. Keene