My Brokerage Acct Current Status: Maintenance Margin: $37867 Available funds $160 Leverage 0.82 SMA $19058 Stock value $18969 Options Value $46315 Net Liquidation $84000 Unrealized P/L ($60700) Equity With Loan (EWL) $37986 - I have unlimited trades left right now, however if I go below $25K Equity with Loan, they limit the # of trades. - $45K in another account totally
does this tell you anything?
shortgamma, whom you've indicated as knowledgable, thinks i should not do any PUTS, only short sell some calls.
perhaps you could you explain to me shorting calls? i know its probably stocks 101, but i never did any shorting.
don't i need to have equity in my account to cover the short in case the stock rises?
does that somehow come out of the 4 call positions i already own as collatoral?
First off, I have successfully played many of GOOG's 15-20 point swings in the past few months. I personally think GOOG is set for THE decline when the final lockup shares are released. You need salvage what money you have and make it back if possible so listen carefully as I am sincerely trying to help you. We've all been there.
Sell the 220s, 230s, and 240s tomorrow to raise cash. Don't worry about the loss as you must have cash for the future 20-40 point move that is to come in the next couple weeks. End result is you want to be in neutral-bearish position with both calls and puts for whatever movement will happen.
The first moves.....up to the lockup date (volatile), and then after the lockup date (down)
So position yourself accordingly tomorrow. You have three distinct possibilities.
1] GOOG continues to go down. [If you keep hoping and do nothing, you lose it all] Not Recommended 2] GOOG stays the same [Your call premiums decay and you lose another 50% of your current balance] [Not Recommended] 3] GOOG moves up higher [You luck out and break even] [Wishing doesn't help you tomorrow, Only action will, Time Decay is upon us with 12 more trading days] [Not Recommended]
Though many would be rooting for #3, I highly doubt that as GOOG has fallen heavily and you must protect yourself from the worse. Since you have asked sincerely from the board. Here is my answer:
I recommend swallowing the bullet and taking the losses on the 220s, 230s, and 240s for their time premium left today. They will further decay very fast as they are OTM.
I am using the bid prices from close. http://finance.yahoo.com/q/op?s=GOOG 240 200 Sell @ .35 = $7000 230 200 Sell @ .80 = $16000 220 40 Sell @ 2.00 = $8000 ------------------------------ $31000-commissions
210 31 Hold for now as these will be the first to increase if GOOG bounces
You'll have roughly $30k to play with. Consider yourself lucky that you only need to triple from here to make your money back. That in itself is hard but more possible than making 10 times after losing 90% just to get back to breakeven. Do not hope. Always be IN the trade. Always remember what the odds as they are constantly being stacked against you every day by the market makers.
Ok so you have $30,000. Brace for the downtrend. DO NOT just buy puts as I have a feeling the MMs will hold this to crush time premium going into the lockup. They will swing it hard and currently, that movement could be down to the $190s before they move it back up, imo....to trap even more option speculators....of course!