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Old Jan 25th, 2012, 03:21 PM   #13
hajimow
 
 
Join Date: Mar 2004
Posts: 2,728
You did not tell us your entry point.
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Old Jan 25th, 2012, 03:42 PM   #14
TheGoonior
 
 
Join Date: Oct 2009
Posts: 883
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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?
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Old Jan 25th, 2012, 03:45 PM   #15
probe1957
 
 
Join Date: Jun 2011
Posts: 272
Quote:
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.
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Old Jan 25th, 2012, 03:50 PM   #16
total_keops
 
 
Join Date: May 2008
Location: Montreal
Posts: 1,426
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Quote from stevebearman: If I want to speak with an expert and get their advice, who would you recommend?
Jim Cramer on MAD money.
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Old Jan 25th, 2012, 03:58 PM   #17
nkhoi
Moderator
 
Join Date: Aug 1999
Location: VA
Posts: 8,905
if you feel panic attack buy back 5 contracts then check your pulse.
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Old Jan 25th, 2012, 04:16 PM   #18
daveyc
 
 
Join Date: Feb 2011
Posts: 138
Quote:
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.
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