Should I panic about my short position on Apple calls?

[trader198]

I bought 100 lot GLD 164 call monday at 0.94, yesterday and this morning really pissed me off, I almost paniced. it dropped to 0.09, and held there for the whole morning, almost wanted to close it out, then thought already at 0.09, why bother selling, so held and held until FMOC announcement. man, really suffers. sold 90 lot at 2.3. glad FED saved my ass.

never shorted any call or put, my suggestions.

 

[trader sim]

I would just get out - call it a day - and hopefully a lesson learned

 

[hajimow]

You did not tell us your entry point.

 

[TheGoonior]

Quote from 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!

I don't know how you can consider naked calls ahead of earnings a "safe" play?

Normally I'd just say cover and take your lumps, but earnings have come and gone so an upside gap probably won't materialize. That doesn't mean AAPL can't zing past your short strikes, though.

Possibilities to consider:

1) Do nothing until price hits $470 at which point you start to cover and take your lumps. Time is on your side. Still risky.
2) Wait until upside resistance is broken and then start converting to verticals.

Don't waste your time looking for "experts" to talk to. The only one who has a vested interest in your position is you and you really need to educate yourself. How else will you know if the advice you're getting is worth the paper it's printed on?

 

[probe1957]

Quote from 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!

What is your concern? You sold a strike that is way OTM with a delta of 16. It seems to me like you are okay for now anyway.

 

[total_keops]

Quote from stevebearman: If I want to speak with an expert and get their advice, who would you recommend?

Jim Cramer on MAD money.

 

[nkhoi]

if you feel panic attack buy back 5 contracts then check your pulse.

 

[daveyc]

Quote from total_keops:

Jim Cramer on MAD money.

now jim cramer is full of good advice but he's just too bearish most of the time lol.

 

[diablo11]

Quote from shfly:

Go back a couple of years and look at AAPL's movement after earnings...Usually it's gapped up, then sold off some...Will it repeat this time, who knows?!

Market looks kinda toppy...but might get toppier still

Good luck.

How long ago did this feel "toppy" that could have been said for the last hundreds of dollars of move.

 

[zdreg]

Quote from 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!

if u did it yesterday
Position
Short 90 Jan 470 call(s) at $0.26
Underlying stock at $420.00
Minimum applies in this case

Initial Margin
Margin requirement: $380,340.00
Proceeds from sale of short call(s): $2,340.00
Margin call (SMA debit): $378,000.00

"I thought I was playing it safe when I sold 90 Feb. 2012 Apple calls at 470 strike price"

are you in the insurance business? incredible that people think they can compete with people on the floor.