Should I panic about my short position on Apple calls?

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

  1. Nine_Ender

    Nine_Ender

    You mean the fact that markets are basically flat today, not much happening, and AAPL tried to break out on the upside but seems to have been clearly pinned to $500 area now ( @ 3 pm ) ?

    No surprise, seen this action many, many times on monthly expiration ( after 3:30 pm is a bit of a wild card because often many of the holders are out by then ). AAPL is an extremely volatile trending stock, the odds of it ending up close to $500 are not the great ( under normal market conditions ).
     
    #191     Feb 17, 2012
  2. newwurldmn

    newwurldmn

    Believe what you want.
     
    #192     Feb 17, 2012
  3. the weight of the Calls open interest to put open interest... with so much recent speculation in the stock.. alot of all the volume in the stock was related to conversions on the way up and reversals on the way down .. when people buy calls into earnings for speculation the market maker does the opposite transaction.. your buying a call.. he is shorting it... making his position -call, long stock long put... so them buying the stock sends it up! i watched a put worth .25 cents go to 8 bucks in that blowoff top with apple... today i put on a credit spread based on the open interest, and my speculation on lack of volatility ..

    alot of these responses are kind of wild... options have everything to do with directions of stocks! and their volatility
     
    #193     Feb 17, 2012
  4. Troll certified!

    Next stop- entering into trades that people reccomend- particularly those people who asked the OP to hold on to it till expiration because a $20 or so move isnt likely on AAPL- $20 being a mere 4.4% when the darling company of the planet was at $450.

    Love this site!
     
    #194     Feb 23, 2012
  5. Out at 22.00 on all.
     
    #195     Feb 24, 2012
  6. OMG, shorting AAPL calls? Can you say wipe out net worth?
     
    #196     Feb 28, 2012
  7. Not if it's a vertical- sure there's a chance of a serious blow to the account but a blow-up.

    Of course you'd probably need to have a portfolio margin account to do so with any profit margin- which atticus probably has and is able to directly short naked contracts that are safely OTM or within a certain risk tolerance for him.
     
    #197     Feb 28, 2012
  8. I am not naked short calls in anything. I believe he's referring to the OP, albeit quite delayed.
     
    #198     Feb 28, 2012
  9. RobertG

    RobertG

    #199     Feb 28, 2012
  10. HAHAHAHAHAHA

    I dont think the people commenting in that article are selling apple short.

    But you're right Robert, these kinds of services are what's wrong (and so juicy so laughable) about the internet....

    This comment from Steve555 is absolutely hilarious:

    "The author here, T. Kee, advised me to short AAPL at 420 so I did. After earnings, he advised I short at 446, so I did. Now AAPL is at 534 and I have lost everything. Why would he advise shorting AAPL after those incredible earnings last month? It doesn't make sense. What do I now Thomas Kee?"

    Kaboom!!!!!
     
    #200     Feb 29, 2012