Should I panic about my short position on Apple calls?

[stevebearman]

I thought I was playing it safe when I sold 90 Feb. 2012 Apple calls at 470 strike price. Apple announced earnings today, and its stock rose from 420 to 450 in after hours trading. What are the possible approaches?

If I want to speak with an expert and get their advice, who would you recommend? How do I even find people to talk to online?

Thanks in advance!

 

[JSChicago]

If I want to speak with an expert and get their advice, who would you recommend? How do I even find people to talk to online?

Thanks in advance!

I don't know if this helps, but if I needed options help from people I trusted I would go to two sources:

1. My broker. I don't know who you use, but they may have a number of experienced traders as part of their customer service department.

2. The TastyTrade show (www.tastytrade.com) has a call-in hour that usually starts at 10:00 AM (CST).

 

[Patricia12]

There is Ezekiel Chew, Forex Mentor it may help you. site: asiaforexmentor.com ( I am not associated with it, referred just for your help ).

 

[D Trade]

The options expire at the end of Feb?

 

[Hoggums]

If you're worried you need to close your positions. Holding on in hope could prove very expensive.

If you are reluctant to take the loss then you should have never entered the position. You can't win all the time.

 

[scose-no-doubt]

If you weren't holding these options would you fancy Apple going to 470?

 

[wackypete2]

I thought I was playing it safe when I sold 90 Feb. 2012 Apple calls at 470 strike price. Apple announced earnings today, and its stock rose from 420 to 450 in after hours trading. What are the possible approaches?

If I want to speak with an expert and get their advice, who would you recommend? How do I even find people to talk to online?

Thanks in advance!

Close your positions. If your options are uncovered you are playing with fire and the fact that you may be panicking surely isn't good for your health. That's no way to trade or invest.

Just my opinion,

Peter

 

[stevebearman]

I don't know if this helps, but if I needed options help from people I trusted I would go to two sources:

1. My broker. I don't know who you use, but they may have a number of experienced traders as part of their customer service department.

2.
Thank you very much. Good suggestions

 

[stevebearman]

Thanks very much. Good and helpful suggestions.

 

[stevebearman]

Close your positions. If your options are uncovered you are playing with fire and the fact that you may be panicking surely isn't good for your health. That's no way to trade or invest.

Just my opinion,

Peter

Sounds right. Thanks.

 

[stevebearman]

Sounds right. Thanks.

 

[stevebearman]

The options expire at the end of Feb?

Yes.

 

[stevebearman]

Yes.

 

[N Rothschild]

so did you cover your short calls? bet you got proper wrecked!

 

[wackypete2]

Yeah, if he didn't cover them I'd say his trading account is RIP
Just like that deadbroke guy.

Peter

 

[scose-no-doubt]

I started to notice a while back that there's always a serious short bias on this site. What's the deal with it? Psychological? Maybe people look at highs from whenever on charts and just say nah it cant go there again.

 

[wackypete2]

I started to notice a while back that there's always a serious short bias on this site. What's the deal with it? Psychological? Maybe people look at highs from whenever on charts and just say nah it cant go there again.

Prices tend to fall much faster then they rise. It's the panic mentality when people buy and things don't go right. GENERALLY, shorting offers a better opportunity to make decent profits at a faster pace. Of course that's assuming you have a plan in place. Shorting just because "it can't go higher" will end your trading days rather quickly too.

Peter

 

[scose-no-doubt]

teroo

 

[N Rothschild]

people think being "short" is cool. about all it comes down to

 

[Jack o'Clubs]

Guy was a wind-up merchant. Selling 90 AAPL calls is, what, $4.2m capital at risk? At 10% margin? LOL.