Should I panic about my short position on Apple calls?

Discussion in 'Options' started by stevebearman, Jan 24, 2012.

  1. Doubled position at 19.60. Average from 19.30 risk.
     
    #161     Feb 15, 2012
  2. newwurldmn

    newwurldmn

    flat on the booster. down over 6 on the calendar. calendar bigger than the booster.

    i might have top ticked with the calendar (which has a fair amount of delta). that's annoying.
     
    #162     Feb 15, 2012
  3. Yeah, it sucks. I thought you were out of the booster. I had ample opp to short in the 512s and hold. Up 13 per share on the day, but should have been 20.
     
    #163     Feb 15, 2012
  4. There is a chance that thursday/friday is a heavy bear market and those calls might go out of the money.
     
    #164     Feb 15, 2012
  5. Nine_Ender

    Nine_Ender

    Doubtful. Contrary to popular belief, major moves rarely occur at the end of option expiry weeks. This is due in part that option sellers ( on both sides ) do not want major moves, and will protect their positions if things get crazy.
     
    #165     Feb 15, 2012
  6. Your stupidity has no bounds. :)
     
    #166     Feb 15, 2012
  7. From any forex trader, no matter what they have to say, their views on the market is practically irrelevant, because they aren't participants and really don't ever understand their trades completely or that it absolutely isn't even possible to understand completely, either. Too many variables non-existent in equity index trading, where you can know enough than not ever enough.
     
    #167     Feb 15, 2012
  8. +1
     
    #168     Feb 15, 2012
  9. Ukranian, rusky, bitch, mixed with Mayflower compacts.
     
    #169     Feb 15, 2012
  10. newwurldmn

    newwurldmn

    That's great. Yeah, I didn't cut them. I did cut my march upside short calls however, they quickly became teenies.

    It was my worst trade since I started my fund 6 months ago. Cost me 1% today and I violated a rule of trading into extreme momentum.

    The term is crazy and I think that longing may and selling either march or april is a good trade as the vol is bid but may has earnings and it doesn't look like it's being priced in properly. However, realized vol from here should be pretty high in AAPL.
     
    #170     Feb 15, 2012