Stop loss for naked call going ATM

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

  1. I was down almost 400% yesterday on this option. Now I'm up 35% and premium is coming down fast with 1 day till expiration. Unbelievable... Sometimes you need to give some room for the trade to work itself out.
     
    #11     Apr 20, 2006
  2. It's entertaining to see someone trade by the seat of his/her pants. 32 posts to your name but unfortunately you seem to have learnt virtually nothing from this forum to make you a better trader - down 400% and you want to give it some wiggle room? You have lady luck on your side today. But of course tomorrow is another day, right?
    daddy'sboy
     
    #12     Apr 20, 2006
  3. Buy1Sell2

    Buy1Sell2

    Great patience! As I said before, you should always relate decision to overall portfolio and life quality.
     
    #13     Apr 20, 2006
  4. WD40

    WD40

    why go naked when you can be protected?
    I think it is a good time to pick up a basic options strategies book, before you go broke.
     
    #14     Apr 20, 2006
  5. And a very simple way to protect yourself is to buy an equal amount of call contracts 1 or 2 strikes above the short contracts with the same expiry for a credit spread.

    Or:

    Buy the shares for a covered call.
     
    #15     Apr 20, 2006
  6. covered call=naked put.
    daddy'sboy
     
    #16     Apr 21, 2006
  7. I added short put yesterday and doing short straddle now. The stock is playing around the strike and the premium is coming down like a rock. Either the call or the put will expire worthless at the end of today and show a profit. Hopefully both will expire worthless ATM.
     
    #17     Apr 21, 2006
  8. jj90

    jj90

    Please send me your trades so I can take the other side. By the way your posting, I'd be glad to trade vs you.
     
    #18     Apr 21, 2006