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?