Stop loss for naked call going ATM

Discussion in 'Options' started by a529612, Apr 19, 2006.

  1. For those who are into naked call, is 200% stop too tight or about right if the position moves against you? If the option is currently ATM with 2 more days till expiration, should I wait and see before covering on Friday? Thanks!
  2. Buy1Sell2


    Do you have profit in the position currently?
  3. I was in profit earlier this morning but now in a loss. The intrinsic value should be 0.3 but it's selling at 1.8.
  4. Buy1Sell2


    Are you overextended to the point where your livelihood or trading account livelihood would be compromised with a large move against you?
  5. No, I've seen worse.
  6. You mean the time value.

    Intrinsic value is the difference between the underlying stock's price and the option strike price.
  7. Yes, I mean intrinsic value if the underlying closes at this price on Fri.
  8. Buy1Sell2


    This is just me of course, and I haven't seen the chart, but I would hold it. The decision must be related to overall portfolio and life quality.
  9. novel20


    Is the earnings annoucement coming up?

    Good luck. :D
  10. Buy1Sell2


    Longer term chart perusal should give a clue about post earnings direction, however if you are very concerned about it, just buy it back--limit order only, don't give in. However, it looks like some decent time premium to be gained there. You could always buy an OTM strike as a stop loss. With 2 days left perhaps very cheaply?
    #10     Apr 19, 2006