2011: Rebuilding My Battered Account

[shortie]

Quote from jones247:

I'm not sure why I'm doing this, as I don't know you at all. However, I feel compelled to "lend a hand". So here it is... HEDGE YOUR OPTION POSITIONS!... look at how the successful floor traders managed option positions...

Hopefully, you'll heed this advise. It's truly worthwhile.

thanks,

Walter

what's the best way to hedge his $110K options expiring in two days on the morning of earnings report?

IV was dropping fast.
would you sell puts with a different strike?

I think once the position is of an insane size, it is hard to do anything. the problem with a hedge is that one has to deal with a huge hedge in addition to the huge position.
in fact, one may end up losing more WITH the hedge

 

[Red_Ink_inc]

Quote from jones247:

I'm not sure why I'm doing this, as I don't know you at all. However, I feel compelled to "lend a hand". So here it is... HEDGE YOUR OPTION POSITIONS!... look at how the successful floor traders managed option positions...

Hopefully, you'll heed this advise. It's truly worthwhile.

thanks,

Walter

The point of this journal isn't to hedge risk. The point is to make very large directional bets and either hit some home runs or strike out.

Just sit back and enjoy the show.

 

[jones247]

It's best to adjust from a position of strength... time provides that strength...

If you strength is stripped, then get out! It's best not to get into a trade with no strength.

Walter

Quote from shortie:

what's the best way to hedge his $110K options expiring in two days on the morning of earnings report?

IV was dropping fast.
would you sell puts with a different strike?

I think once the position is of an insane size, it is hard to do anything. the problem with a hedge is that one has to deal with a huge hedge in addition to the huge position.
in fact, one may end up losing more WITH the hedge

 

[nillionaire]

Quote from NoDoji:

Clean ascending triangle poised at resistance.

I've a buy stop in place to purchase 100 December 2011 $480K NEKE call options should the account balance break $350K

Broke support, hope you got those NEKE put options instead.

 

[neke]

Tragedy has struck!!!!!!!!

 

[Tauvros]

Tragedy has struck!!!!!!!!

YOKU?

 

[shortie]

i hope you will make it out ok. best of luck!

 

[BeTheSparrow]

I hope you are ok.

 

[spd]

Im guessing he bought 500 DITM puts on something thats going straight up?

 

[Grandluxe]

hmmm?