Should I panic about my short position on Apple calls?

[zdreg]

Quote from Churchill:

At this point, in my estimation the initial position would require around $100K of extra margin to not be forced to sell. As stated earlier, selling OTM options, be it calls or puts, is not free money.

Hopefully he sold already, but if not, it is an expensive lesson.

During the 2008 and early 2009 meltdown, I sold OTM puts on some large Canadian banks never thinking I would be filled. I did get filled. I had the required margin and held long enough to break even and a little more, but was sweating in the mean time and learned that lesson the relatively easy way, thankfully.

But as to the OP, selling uncovered calls is dangerous. Theoretically unlimited loss and as opposed to being straight up short, it is leveraged.

"Hopefully he sold already, but if not, it is an expensive lesson."
]At this point, in my estimation the initial position would require around $100K of extra margin to not be forced to sell.
you mean bought."
Theoretically unlimited loss" is a meaningless statement.

 

[zdreg]

Quote from Churchill:

That is cruel, yet creatively funny. I see that there are no sholders to cry on here at ET.

that doesn't stop posters from whining.
here is one of my favorites:
shit, I just quit my job and started trading. Now you tell me day trading is dead.

You should have posted it two weeks earlier! I would have kept my job.

 

[noob_trad3r]

Maybe Thursdays economic indicators might offer some respite.

 

[Churchill]

@zdreg yes, I mean bought back the options...close out the position.

Theoretically unlimited loss is somewhat meaningless, but I and others use it as another way of saying a huge potential downside.

The fellow who bought the calls is now up roughly 3X plus his money, assuming they are still holding. Not bad in such a short time. (Yes, I know that his 90 contracts could have been split amongst multiple buyers, etc.)

 

[zdreg]

Quote from Churchill:

@zdreg yes, I mean bought back the options...close out the position.

Theoretically unlimited loss is somewhat meaningless, but I and others use it as another way of saying a huge potential downside.

The fellow who bought the calls is now up roughly 3X plus his money, assuming they are still holding. Not bad in such a short time. (Yes, I know that his 90 contracts could have been split amongst multiple buyers, etc.)

"Theoretically unlimited loss is somewhat meaningless, but I and others use it as another way of saying a huge potential downside."

you and every business journalist or financial adviser who says that short selling should not be part of an investor's tools.

 

[shfly]

Quote from zdreg:

"Theoretically unlimited loss is somewhat meaningless, but I and others use it as another way of saying a huge potential downside."

you and every business journalist or financial adviser who says that short selling should not be part of an investor's tools.

Maybe he sold some puts to re-balance this pos?

 

[Nine_Ender]

Quote from Churchill:

@zdreg yes, I mean bought back the options...close out the position.

Theoretically unlimited loss is somewhat meaningless, but I and others use it as another way of saying a huge potential downside.

The fellow who bought the calls is now up roughly 3X plus his money, assuming they are still holding. Not bad in such a short time. (Yes, I know that his 90 contracts could have been split amongst multiple buyers, etc.)

3X ??? No. Try more like 30X.

 

[zdreg]

Quote from noob_trad3r:

Maybe Thursdays economic indicators might offer some respite.

are you long those calls and buying more?

 

[Churchill]

Quote from Nine_Ender:

3X ??? No. Try more like 30X.

I'm looking at the AAPL calls expiring on the 18th of Feb 2012, stike price $470. I have today's range as being from a low of $5.75 to a high of just over $8. The OP said they sold at $2.70. Looks like roughly 3X to me, unless I am looking at the wrong information, which someone will shortly point out.

 

[atticus]

Quote from newwurldmn:

TROLL thread.