Before I trade "Ebar short," I have $220,000 , now is a little over $180,000. It's a little less than 20%. I didn't count peny and dime. just try to give you guys an idea. I'm asking any one understand better than me about use option as a hedge funds. I give these numbers are for your reference to get a clearer picture of my situation. Any one know ? I'm getting frustrated by a few of you more focus on the numbers rather than recommend me a better idea. Isn't this a place people help with each other and exchange information? Every body make mistakes now and then. At least I do.
overland, Drop me a PM with your email address, and I'll try to help. I can recommend a few good books and try to help construct a conversion that makes sense. You can easily convert your current position into a straight put (limited risk, unlimited reward). One way or the other, you'll be in the hole, but at least you'll have a less risky way out.
Hello Broker Boy Thank you for reply. As English is my second language, If my message is not clear for some other folks, you are the one ihas better understand me . You are right $35 strike is cost about $9.45 if I rember right. Let's see, the first, In order to cover 10,000 shares of short. Don't I need 100 call contract to cover my short position? Second, I don't understand is'nt 100 contact cost me about $1000? and If I excerise my contract , I will have profit about (43-35)X10000 - all other cost . I'm I right? I'm not a option trader, I'm a stock trader, which has paid off my 2500 sqft golf view house. But this "Ebay trade" is a biggest loss on my last a few years tradding experince. waiting for your kindly reply
Hello, Uninveted_guest I like your idea, Ebay does have a lots of flaw. I have been cheated twice by the seller. going through Ebay dispute procedure is quite truble some too, you have to pay $25 before they even look at your case. Thanks for your kind reply
Put a combined order to cover your shorts and sell 42.5 Call. So you will be short in December if it goes above 42.5 but you have sold some time too that will reduce your loss or increase your profit. I suggest the debit of 44.67-2.95=41.73 ---> 41.70 Then sell naked PUT 40 for December @ 0.3 to get more juice out of it. You can ignore the second trade. If you don't want to do the first trade that I highly recommend it, sell PUT for 42.50 in the seond part. Don't give in. Be a man and turn a loss to a profit by thinking and taking the right action. If you buy Call 35 call , you have bought the bullet for your death. Your post also shows that your knowledge on options is not good and you have to sharpen yourself in that field.
Hello, Uninveted_guest I like your idea, Ebay does have a lots of flaw. I have been cheated twice by the seller. going through Ebay dispute procedure is quite truble some too, you have to pay $25 before they even look at your case. Thanks for your kind reply This post shows that you were pulling the legs of all of us as a folk already said that. You are either not serious or really too rich that this loss does not matter to you. To prove your honesty , can you attach a pic of your position page in your IB account?
Well you are quite the funny one first it cost 10k to buy the options and second your selling calls not buying them. There is no way you can be a real trader. I would be shocked if you had real money even. Your getting wise and you are saying buy calls when you mean selling calls.
It's $9.45 x 100 (shares/contract) = $945 per contract. You need 100 contracts to cover your 10,000 shorts. (A total of $94,500)