How to manage this beast?

Discussion in 'Options' started by energizer6666, Oct 10, 2011.

  1. hi, today i get the most difficult experience in my 5 trading career ,Friday i get assigned 180 116 SPY's with closing price 115.71,so Monday i was sort 18000 SPY @116,
    i get panicked a bit so i sorted 130 P@OCT21 for 3.58 and 80 P@OCT21 for 3.43,i also buy a +200-450+200 Put OCT21 butterfly for .19
    and a +200-400+200 call OCT21 butterfly for .28.
    i also had +30P@110,+30P@106 and +10P@104 all for OCT21.
    i'm in heat now, can you help me to proper manage this position and what adjustments are better to do?
    this position is quite large for my account i cannot think clearly ,thanks!

  2. I'm sorry, your two posts today have exceeded your annual average post limit. Please come back next year :)

    If you have a position that is large enough to trouble you and appear to be a beast, cutting your losses is usually the best thing to do. Panicking and adding additional layers of complexity usually isn't a good idea. Do so only when you have a clear idea of your objective and fully understand the ramifications of doing so.

    Also, expecting anyone to know the best way to manage this position is unrealistic. No one knows what the SPY is going to do. The best one can do is adjust on the fly, booking profits and laying off risk as each arises. It's still a roll of the dice what may happen after anything is done.
  3. As my S&P model is short right now, I don't know how to reconcile that with my NQ model being long two versus the ES short 1.

    It seems the trend for NQ is certainly up, but not so much for the other indexes. That short's off a higher low so cutting shorts out now would probably be a mistake.
  4. Easy solution, buy 18,000 spyders and be done with it.
  5. As a CTA it is advisable to hold shorts here until 115 on SPY, possibly 113.
  6. Good gawd I'm glad I don't trade options.
  7. Holy crap op confusing. Did he get assigned on 118 cars for a short 116 put? That would be pretty large equity position.

    He would have made a nice profit selling the underlying equity position today.

    Oops i think i get it. He was long the puts and got the occ autoexercise. Lolz thats bad! Thats reallly bad!
  8. Im really sure he needs you idiots to rub it in.
    any respectful options traders willing to hand hold this guy in a moment of stress?
    would be a nice thing to do .

  9. That certainly appears to be the best solution to me. Take your $5200 loss (less premium received) and be done with it. But what do I know.
  10. I honestly don't get it either. I am certainly too ignorant to help the guy but I don't understand why someone here, who is capable, wouldn't. Maybe this is the wrong forum to come to if you need help.
    #10     Oct 11, 2011