I registered a few years ago on this site. have never post thread before, I usually only trade stocks and have been doing good, last year, I have 80% of profit to loss trading ratio. I wasn't humble enough to learn risk manegemant. But this is a wake up call for me and I realize how little knowledge I have regarding trading. The past success might be just had good luck. I sincerly asking you guys help me to get out this mess with potinacall minum loss Every one's opion is very valuable for me. Thanks.
What was your plan when you sold EBay short? Was there a stop loss and target price you had when you put it on? Have a plan first before you trade? Most basic plan includes 2 numbers at the time you put a trade on, 1. where you will get out if it goes against you and 2. where do you get out if it goes in your direction. 2 numbers before you place any trade. One other way if you still married to your analysis is to close the trade and buy put options and buy call options for different months depending on your outlook of whether EBay will go down first or up first, just one of them
hello, shortologist Thank you for your reply to my post. I looked at Apol and Ebay last two months chart are so similar. They are just in different sectors. I'm afraid to do any more short right now. I just want to clean up my mess. Thanks again
Uh huh. So you're short 10 000 Ebay ($430 000) which you say you have 100% margin (I assume you have no margin loan for this short). Now you're down by a whopping $16 000 and you're all worried. Now you want to buy deep in the money calls to hedge the position, you mentioned $35 calls which will set you back at least $100 000. This post has got to be the biggest bullshit i've ever read. If you've got the amount of money you claim, down $16 000 is nothing. You are full of it.
I do have margin, another word, I only own half of the equity, My plan is liquidate 2500 shares to 5000 shares tomorrow dependes on how Ebay doing. I'm able to wire some money in to brokerage account (IB) from my home bank to get less margin, or no margin. I really want to understand about how is call option works. Is it possiable for me to minmize any more loss. ( I already lost 20% of my equity for this perticular trade. short Ebay in wrong time) Thanks
50% margin on $430 000 short works out to $215 000 required margin (overnights for IB). You're short from $43 and the current price is $44.67, works out to a $16 000 loss. Yet you say you're down 20% of your equity which would imply a loss of $43 000 ($215 000 x 20%). What is the real story? If you have so much money to wire in more, then why worry about a piddly $16k loss? Nothing you are saying matches up. If anything you say is true, close your position tomorrow. Put your money in t-bills until you have a better understanding.
Plugger, Overlandpark might be a sixteen year old playing on his Mommie's computer, but on the other hand when I was at Broadway trading there was a guy just like him, and he did have a pile of Daddy's money to jack around with.
Sell PUT 40 for December and keep your short position because you have enough money in your bank account to support you. If you get scared with $5 fluctuations in the stock, don't do big trades. You won't need any money to sell PUT 40 for December.
Why buy December 35 calls? I did not look but they must be 10 bucks at least. So youâre willing to lose 100k if youâre wrong. It all seems odd. The shorting of 10k shares seems quick wild. Can I ask what you do for a living and do you have a net value of 5 million at least? I canât imagine a normal guy pulling in 150k a year salary with even million in the bank making that big of a trade with a 5 point gap on the chart. Why not buy like 50 strike price calls?