Request advice almost blew up account

E

eaglefeather

Hello,
I made a series of mistakes trading US Steel which cost me dearly.
For brevity, I ended up long on the security and rode it down all the way from 37 or so to 20.
I want to maintain a long position on this stock, but I really have to watch my margin balance, I would be curious to know how my fellow options traders would accomplish this. ATM calls are too expensive, as are box spreads.
Anyone know of a tweaked box spread or something there alike?
I believe this stock may spike but want to give it some time.
Please don’t need basic advice, only empirical options spread examples.
 
eaglefeather said:
Hello,
I made a series of mistakes trading US Steel which cost me dearly.
For brevity, I ended up long on the security and rode it down all the way from 37 or so to 20.
I want to maintain a long position on this stock, but I really have to watch my margin balance, I would be curious to know how my fellow options traders would accomplish this. ATM calls are too expensive, as are box spreads.
Anyone know of a tweaked box spread or something there alike?
I believe this stock may spike but want to give it some time.
Please don’t need basic advice, only empirical options spread examples.
More...

If you really believe in the stock, you can hedge it with puts. Or you can do some call spread if the stock is currently going down to give you some $$ for the time being.
 
You want downside protection while being way too late in the game and you want immediate protection and it should be cheap (in a high vol environment). Let me give you an equivalent what you want. Your house is burning and you are not insured. Now you want an insurance that is backdated to before the fire and it should be cheap. Guess how many insurance companies will write you such policy....

eaglefeather said:
Hello,
I made a series of mistakes trading US Steel which cost me dearly.
For brevity, I ended up long on the security and rode it down all the way from 37 or so to 20.
I want to maintain a long position on this stock, but I really have to watch my margin balance, I would be curious to know how my fellow options traders would accomplish this. ATM calls are too expensive, as are box spreads.
Anyone know of a tweaked box spread or something there alike?
I believe this stock may spike but want to give it some time.
Please don’t need basic advice, only empirical options spread examples.
More...
 
Satisfies the "cheaper" requirement but does not protect nearby. OP mentioned his margin is almost depleted. I would say the Trump steel trade exploded in his face. Plus OP is most likely overleveraged. I would say get out pay the price for the lesson and reassess.

silveredge said:
long OTM calls and short OTM puts?
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What if the price goes back up? Not the greatest advice to trade a spread in this scenario...can we safely agree that the populist/nationalist trades stopped working? The house of cards is crumbling...

JSOP said:
If you really believe in the stock, you can hedge it with puts. Or you can do some call spread if the stock is currently going down to give you some $$ for the time being.
More...
 
I was not asking. Just stating that it was a dumb recommendation.

JSOP said:
Why don't you figure that out yourself? I am not going to bother to feed your trolling on this one. @eaglefeather, if you truly want to know the answer to this question, PM me and I will answer you. Cheers!
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