I just got an assignment...HELP

[WD40]

Quote from maae10:

Got me all figured, have you?

I actually got very little advice regarding the question that I asked. I got a bunch of people telling me how I shouldn't be trading.

they are correct in telling you not to trade, until you have learned your basics.

Here's my observations:
1. you don't know how assignments work
2. you don't know how to calculate your P/L
3. you don't know how to calculate time value
4. you don't know the purpose of selling put (rallymode is just as hopeless as you)
5. you don't know how to sell put (eg. what strike to choose -- probably you don't know your greeks)
6. you know know how to draw a risk graph
7. you have not defined the risk in your put trade
8. you do not have a written trading plan
9. you don't know that to achieve your profit objective (profit from AAPL going higher), there are alternatives with controlled risk, lower risk, less margin, and more profit potential
10. you don't know that these alternatives are studied in option course/books (i.e. no rocket science)
11. (this is why good intentioned people got so jumpy) You do not know the peril of selling naked put

I did not made these up. All of the above are extracted from this thread.

 

[MTE]

Quote from maae10:

Got me all figured, have you?

I actually got very little advice regarding the question that I asked. I got a bunch of people telling me how I shouldn't be trading.

Are you kidding? Your intial question was answered on the very first page:

QUESTION:

Quote from maae10:

I'm a little new to the game and I got an e-mail saying

"BASED ON AN ASSIGNMENT FROM OCC, YOUR ACCOUNT HAS BEEN ALLOCATED THE FOLLOWING ASSIGNMENT ON SHORT OPTION POSITIONS"

I just picked up this position yesterday. Do I need to purchase the stocks myself to cover or will the prop firm do it for me?

I bought puts in the money and the price went up a smidgen, I still get to keep the sale money to offset the shares I need to buy......right? I'm only going to take a small loss.

ANSWER:

Quote from just21:

They will put the shares in your account automatically. Should have sold out of the money if you didn't want them.

ANOTHER QUESTION:

Quote from maae10:

Will they credit the account the sale price for those options?





I don't understand? I bought a put in the money because I think the stock is going to move up.

ANSWER

Quote from MTE:

You seem to be very confused. You didn't BUY a put you SOLD it, otherwise you cannot be assigned nor would a rising stock be beneficial to buying a put.

You sold a put, you got assigned, now you are a proud owner of the stock (purchased at the strike). You keep the premium you sold those puts at. If you want to get flat then you have to sell the shares in the market.

Obviously after that it got out of hand, but you asked a couple of specific questions and you got specific answers.

 

[gbos]

Quote from maae10:

Got me all figured, have you?

I actually got very little advice regarding the question that I asked. I got a bunch of people telling me how I shouldn't be trading.

I haven't read the thread (all 19 pages) but 'don't trade' is also an advice and sometimes a good one (for example when someone can’t estimate the true risks of his position either by lack of knowledge or by overconfidence).

And no I m not one of the minority experts with 95% accuracy on my trades.

 

[TorontoTrader2]

Quote from WD40:

they are correct in telling you not to trade, until you have learned your basics.

Here's my observations:
1. you don't know how assignments work
2. you don't know how to calculate your P/L
3. you don't know how to calculate time value
4. you don't know the purpose of selling put (rallymode is just as hopeless as you)
5. you don't know how to sell put (eg. what strike to choose -- probably you don't know your greeks)
6. you know know how to draw a risk graph
7. you have not defined the risk in your put trade
8. you do not have a written trading plan
9. you don't know that to achieve your profit objective (profit from AAPL going higher), there are alternatives with controlled risk, lower risk, less margin, and more profit potential
10. you don't know that these alternatives are studied in option course/books (i.e. no rocket science)
11. (this is why good intentioned people got so jumpy) You do not know the peril of selling naked put

I did not made these up. All of the above are extracted from this thread.

You just described 90% of Joe Q. Public traders! No wonder the big firms post records profit every year (ML, GS, LM, et al)

 

[pattersb]

Quote from maae10:

Got me all figured, have you?

I actually got very little advice regarding the question that I asked. I got a bunch of people telling me how I shouldn't be trading.

Well, you most likely extracted more information from this thread than you anticipated.

Something tells me that you are not shy about calling your broker to get things straight....



good luck... you scored HUGE on aapl!


(But tell me you're a Woman. If not, I'll be forced to re-evaluate my view on the world. And then cut off your scroctum, because for a man to pretend to be helpless deserves to lose what he values most)

 

[maae10]

Quote from pattersb:

Well, you most likely extracted more information from this thread than you anticipated.

Something tells me that you are not shy about calling your broker to get things straight....



good luck... you scored HUGE on aapl!


(But tell me you're a Woman. If not, I'll be forced to re-evaluate my view on the world. And then cut off your scroctum, because for a man to pretend to be helpless deserves to lose what he values most)

I am a man. I did score big. You're not getting anywhere near my scrotum.

 

[pattersb]

Quote from maae10:

I am a man. I did score big. You're not getting anywhere near my scrotum.

Is maae10 a comman handle?

http://au.answers.yahoo.com/my/profile?show=273030aa55f35295dc315a9bc47a0cb3aa

One would expect FAR, FAR , FAR more from a man.

"I sold 15k worth of options, with UNLIMITED risk, SOMEONE HELP ME!!!"

 

[JimmyJam]

Quote from maae10:

Got me all figured, have you?

I actually got very little advice regarding the question that I asked. I got a bunch of people telling me how I shouldn't be trading.

Until you figure-out all of the parameters of your trade, no you should not be trading with live money.

That's obvious to everyone but you.

Jimmy Jam

 

[anti ad hominem]

OP I have read all 19 pages of this and I don't think the ET guys were hard enough on you & certainly not as hard as I've seen them be. This could have been a very costly lesson for you esp with an animal like AAPL & you seem to be oblivious to that. What you are doing IS dangerous & it wouldn't even take a black swan event to wipe you out.

I have questions for you. Why are you changing horses mid stream if being long naked options is working so well for you? Why confuse yourself like this? Why suddenly take on real unlimited risk when you can acheive the same results in a limited risk way? This makes NO sense. Or you are a wind-up merchant who knew exactly what would ensue here.

 

[daddy'sboy]

Quote from anti ad hominem:

Or you are a wind-up merchant who knew exactly what would ensue here.

Wind up merchant, Jamie.
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