A vertical call debit spread triggers a margin call. Does that shound right?

Discussion in 'Options' started by jayre, Aug 9, 2011.

  1. "Picking up nickels in front of a bulldozer"


    The OP knows all about picking up nickels in front of a bulldozer. He buys a 65C / 75C debt spread on a mid $20's stock. If you are expecting such a huge move why sell the 75 calls and probably for nickels? The 75 calls ended up being the source of his problems.

    That trade is almost as strange as this one: CLSN $5 August Call Options
     
    #81     Aug 17, 2011
  2. jayre

    jayre

    Right, I got my lesson. That's why I don't pickup any more nickels...
     
    #82     Aug 17, 2011
  3. Jayre:

    Don't be too discouraged. Almost all serious traders have had lessons of one sort or another. The trick is to never be too hurt by one lesson and to pick yourself up after figuring out what went wrong and continue on.

    Serious traders will not make fun of your lessons because they have suffered worse in many cases. Humility is where it is at.

    In order to win the game, you must never be taken out of the game by the unexpected.
     
    #83     Aug 17, 2011
  4. Any ET members fit that description?
     
    #84     Aug 17, 2011
  5. "Any ET members fit that description?"

    Yes, I think I vaguely remember one person writing in who was a little bit humble. LOL

    Seriously, I can tell by some of the comments made, that many seem to have no clue about the real world of trading/investing.
     
    #85     Aug 17, 2011
  6. jayre

    jayre

    I would agree "some" answers here are professional, others not so much...
     
    #86     Aug 17, 2011