the other week I went to sell May 500 calls but bought them by accident. I am new to TD Ameritrade Think or Swim platform and didn't realize it would change my order if I clicked on an option chain. I was hoping to sell them on a bounce but next thing I knew we were retesting 419. Now I am running out of time esp with earnings coming up in a week. My break even is around 445. Do I just sell and take the loss? Do I roll them out to May and bite the bullet on the time premium? Do I buy puts against them? Not sure what is best thing to do. I don't want to hold them through earnings because from what everyone is saying they are going to miss. Then I will lose all. Any ideas? Oh and if you want to make fun of me that's ok, I deserve it.
Thanks for all the great responses guys. I am still open to ideas. Thinking of buying puts but not sure of optimum strike price or when to buy. They should start getting expensive, no? Also my calls will start to decay more rapidly as well. I was also thinking of rolling them out to May. Good idea or no? TIA
They're not gonna miss. If they would miss they would have warned by now. And any weakness in sales will be more than offset by a huge stock buyback and/or a huge dividend increase. The odds are greater that the pps will spike after earnings rather than fall.
Sentiment: Strong Buy
I am not good at option trading. My bad experience with option trading taught me a lesson: buy and hold options generally lose money. Technically, AAPL has completed the shake-off and ready for extension. It is quite possible the stock will reach 445 soon. If I had call options, I would sell the calls when the stock is extended.
If you could explain (more or less precisely) what you think the future holds for AAPL, long term and short term, what risk you're willing to accept and how much, if any, you have to deal w/ (for instance would it be OK to increase your dollar investment by 20%, or 30%, or do you insist on working w/in what you currently have invested dollar wise)....
If you tell us what you expect, and want maybe someone here can tell you how best to translate your expectation into a position.
I think the stock may go down short term because of earnings but then rebound if something good is done with the cash and new products are introduced. Don't know how long it will take to turn around but I see longer term maybe 550. As far as increasing my investment, I am pretty full up now but was going to add on the next dip. Not sure of a percentage though.