Stop loss for naked call going ATM

A

a529612

For those who are into naked call, is 200% stop too tight or about right if the position moves against you? If the option is currently ATM with 2 more days till expiration, should I wait and see before covering on Friday? Thanks!
 
Quote from a529612:

For those who are into naked call, is 200% stop too tight or about right if the position moves against you? If the option is currently ATM with 2 more days till expiration, should I wait and see before covering on Friday? Thanks!
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Do you have profit in the position currently?
 
Quote from a529612:

I was in profit earlier this morning but now in a loss. The intrinsic value should be 0.3 but it's selling at 1.8.
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Are you overextended to the point where your livelihood or trading account livelihood would be compromised with a large move against you?
 
Quote from a529612:

I was in profit earlier this morning but now in a loss. The intrinsic value should be 0.3 but it's selling at 1.8.
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You mean the time value.

Intrinsic value is the difference between the underlying stock's price and the option strike price.
 
Quote from a529612:

No, I've seen worse.
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This is just me of course, and I haven't seen the chart, but I would hold it. The decision must be related to overall portfolio and life quality.
 
Quote from novel20:

Is the earnings annoucement coming up?

Good luck. :D
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Longer term chart perusal should give a clue about post earnings direction, however if you are very concerned about it, just buy it back--limit order only, don't give in. However, it looks like some decent time premium to be gained there. You could always buy an OTM strike as a stop loss. With 2 days left perhaps very cheaply?
 
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