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  • rock99wu rock99wu Feb 2, 2005 6:50 PM Flag

    Sell my Feb calls? life savings. HELP!

    I am sorry to hear your story. But bying march put may not be a good choice. Most likely those wallstreet MM will run the price done around 200 and take all the option premium. If the whole market turns after Feb, GOOG may go up again and then you lost your money on March put. If I were you, I will sell Feb 200 put and call, use that money to cover some of your lost and buy out of money Feb 190 or 180 put. I will sell the Feb 230, 240 call that you already have when there is a gap up. The strategy is called long butterfly. This is just my opinion and I am a amature also. But remember to diversify when you play stock.
    Good luck.

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    • Rock99wu,
      Thanks for your understanding and help. I didn't understand what you said, quoted below. i dont own any puts. i'll quote what i have again:

      "
      200 Feb05 240 Calls @ 1.71 = $34,200
      200 Feb05 230 Calls @ 1.85 = $37,000
      040 Feb05 220 Calls @ 3.91 = $15,640
      031 Feb05 210 Calls @ 7.01 = $21,731
      --------
      Total Spent $108,571
      Right now, I have an unrealized Loss of $61,000.
      I have $46,000 worth of skin in the game to further lose."

      Now you said:

      "sell Feb 200 put and call and use that money to cover some of your lost and buy out of money Feb 190 or 180 put. I will sell the Feb 230, 240 call that you already have when there is a gap up. "

      Are you saying basically don't do any puts at all? Just sell all 4 calls when/if there is a gap up?

      • 3 Replies to sjs1234321
      • If you do a google search, ironicly, for "long butterfly" and you will find your answer. It is hard to predict GOOG price at option expiring date. Since this stock fluctuate so much during the day, you can try to sell calls and buy Feb 190 put when the price go up. Then sell Feb 200 put when price goes down, for example.

        You spend too much on one stock. should consider sell 80% when there is a bounce and take some lost.
        Wait till next quater report and buy some out of the money put. Someday, GOOG will tank.
        Just my own opinion.

      • Holding 200 Feb05 230 calls and 200 Feb05 240 calls will be expensive as expiration approaches. I'd gradually, especially on up moves, sell the 240 and then the 230 calls. I have short 230/240 calls and I plan to let them expire worthless.

        My inclination would be to get out of your position altogether... but do it gradually. It would be wise to hedge your long calls with short Feb05 calls at different strikes... this will hedge down moves in GOOG and reduce your carrying costs of holding long calls. I'll look at some alternate option risk profiles tonight/tomorrow am. I wouldn't increase your exposure in GOOG with puts... that will just guarantee a TOTAL loss on either the calls or the puts.

      • are you stupid or what

        you deserve to lose all your money to put so much on such risky calls!!!

        i have a better get====bet on the superbowl and you might have better chances

        look at what happened to yhoo after a couple of days from surprise upside earnings=====same will happen to GOOG

        sell your calls now before they become worthless

    • Just hang on...it's going to at least $250 soon!

      Simple profit taking from a big run going on now.

      IMO

      • 1 Reply to onpoint11
      • Onpoint11,

        OMG, well if thats true then my current $65K loss and possible $107K loss might be a $107K gain!

        Of course, I don't think I'll have the stomach to ride it up even if it does go there, I'd be happy to get out at zero.


        "Just hang on...it's going to at least $250 soon!

        Simple profit taking from a big run going on now.

        IMO"

    • Is $190 right now. That's why I bought 200 puts. if the boyz do their magic, my position is on the right side of the game.
      Have to watch every angle.
      best, FM

 
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