Request advice almost blew up account

eaglefeather said:
want to maintain a long position on this stock
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Why?Why not move on? I had a friend that rode a stock from 300 to 1. I asked why she did not sell for months and she said I don’t want to take a loss. I don’t understand that as except for taxes, she lost money the day she bought it.

My suggestion is that you learn to take losses and move on. Find a better home for your money.
 
Best advice ever, and big fat kudos to you for recommending to reduce exposure rather than loading up on ever more complex positions in the name of "hedging" and what not. The best hedge against further losses is to eliminate the source of the loss and simply exit the position.

Robert Morse said:
Why?Why not move on? I had a friend that rode a stock from 300 to 1. I asked why she did not sell for months and she said I don’t want to take a loss. I don’t understand that as except for taxes, she lost money the day she bought it.

My suggestion is that you learn to take losses and move on. Find a better home for your money.
More...
 
Hedging is nothing complicated if done right. Of course to some trolls who knows nothing but just go all over the forum to spew garbage to pick fights with others, anything is too "complicated".
 
You are an idiot. And you are a lucky first. So far I have not seen one intelligent value added by you, not in economics, news, options, programming nor anywhere else. You keep on adding shit content and can't even explain your thought process. My only ignore cause I really can't take your crap anymore.

JSOP said:
Hedging is nothing complicated if done right. Of course to some trolls who knows nothing but just go all over the forum to spew garbage to pick fights with others, anything is too "complicated".
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If you want to hold long term and reduce margin, I think your best bet is simply buy an in the money long term call. For example the Jan 2020 15 calls are trading about 6.60. So with the stock at 19.90, you are only paying about an extra 1.70 in premium over the stock price. This will limit your downside to 6.60 and reduce your margin.
 
eaglefeather said:
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.
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There are three types of hedges -- a duplicative hedge (e.g., SPX vis ES), a mirror hedge (SPX vis SH or SPDN), and the uncorrelated hedge (SPX vix cash or real estate or Lambos).

You can find a steel ETF that will move closely with X. You can graph a couple of individual steel makers who move well with X. And at that point, you can work up whatever solution you wish, without endangering your original position in X. Depending on your choice, you can further impede, or you can cut, your margin burden (depending on the margin regime you face).

"Bingo!" :)
 
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I found a solution.
What I needed was a long spread ATM with the following characteristics:
Very little time decay.
Very small capital requirement.
Very little down side.
I’ll post it later, it’s a box spread variation.
 
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