I bought 100 lot GLD 164 call monday at 0.94, yesterday and this morning really pissed me off, I almost paniced. it dropped to 0.09, and held there for the whole morning, almost wanted to close it out, then thought already at 0.09, why bother selling, so held and held until FMOC announcement. man, really suffers. sold 90 lot at 2.3. glad FED saved my ass. never shorted any call or put, my suggestions.
I don't know how you can consider naked calls ahead of earnings a "safe" play? Normally I'd just say cover and take your lumps, but earnings have come and gone so an upside gap probably won't materialize. That doesn't mean AAPL can't zing past your short strikes, though. Possibilities to consider: 1) Do nothing until price hits $470 at which point you start to cover and take your lumps. Time is on your side. Still risky. 2) Wait until upside resistance is broken and then start converting to verticals. Don't waste your time looking for "experts" to talk to. The only one who has a vested interest in your position is you and you really need to educate yourself. How else will you know if the advice you're getting is worth the paper it's printed on?
What is your concern? You sold a strike that is way OTM with a delta of 16. It seems to me like you are okay for now anyway.
How long ago did this feel "toppy" that could have been said for the last hundreds of dollars of move.
if u did it yesterday Position Short 90 Jan 470 call(s) at $0.26 Underlying stock at $420.00 Minimum applies in this case Initial Margin Margin requirement: $380,340.00 Proceeds from sale of short call(s): $2,340.00 Margin call (SMA debit): $378,000.00 "I thought I was playing it safe when I sold 90 Feb. 2012 Apple calls at 470 strike price" are you in the insurance business? incredible that people think they can compete with people on the floor.