Thanks for your thoughts - its always good to "debate" different ideas and strategies. I am definitely not out of the woods yet as DE can collapse anytime. Good luck with your Long Puts as well. I must say Options trading is probably the most difficult I have experienced so far, however the rewards are there.
I'm out. Looks like a continuation breakout. I am not interested in participating further. This short was just ballast for me. Your best risk/adjusted gains may have been realize already, however. Best of luck.
Just for fun- I no longer trade calls,but if I was short some calls,I'd buy a call spread turning the trade into a ratio spread-example you are short 5 ABC 100 calls,you sell another 5,and buy 5 ABC 95 calls. You thus get yourself a better b/e or profit zone, but I'd be more interested in the prices as to what would work best. I have never made much money with calls,short or long!
xandman - yes DE seems to be going higher - may go lower this week. Good you cut your losses! Windlesham1 - nice adjustment to make - should have considered that as well! Will see what this week brings. Cheers Shelton
closed my long 300 stock at breakeven - now I am only short the 5 calls and looking for a drop in DE to exit position at breakeven or better.
Got my ass kicked with DE rallying yesterday.... took some risk off the table by buying back 2 calls - so now I have 3 short calls. Looking to liquidate all positions and take a loss. Didn't work out - should have kept the LONG stock. Cheers
Interesting move. Looks like you got caught in a squeeze. Shorting DE calls for today seems enticing, but it's not bad to simplify things right now. There is "buy the dip" that could over ride any unique positions though FXI is still gapping down.