I just wanted to thank everyone who has helped me so far and offered kind words of encouragement. It is far from over but I knew I wanted to tap some of the experts asap to brainstorm options (no pun intended :-).
I am researching covered calls now, which I believe would be the result of me selling short a call.
One thought i just had... if I retain the Feb05 210's and Feb05 220's... and then purchase 2 other short calls... can calls at one strike price cover for calls at another? Perhaps then you must pay the difference somehow.
This sounds extraordinarily confusing come tax day!
Just remember any decisions made out of fear and haste usually turn out bad. Google is a very unpredictable stock that everyone loves to trade. With the upcoming analyst meeting I would not give up quite yet. I think there could be a run up to this meeting. I think there is still more short term upside before lockup (potential downside). After lockup no one knows what is going to happen, we can only speculate. Remember Fridays usually sell off. No One wants to go long over weekends lately. This time when you are able to get out in tact get out, don't look for more upside, you do not know what tomorrow holds. Just try and get out in one piece or at least close. I am rooting for you, I've been there myself. Keep us posted. Try and keep emotions in check.
Covered calls is when you own the stock and sell the call using the shares as collateral. You want to look at credit and debit spreads.
I would suggest that you get out of the furthest OTM options if yu get a pop in the next two days. You don't want to and have the time decay go against you over the weekend. Also set up your credit spreads ASAP.
Here is an example of Bear call spread:
"Call credit spread
Call credit spread - An option spread position where the profits are spread between the premiums.
If you buy 10 XYZ June 90 call options at 5,
And write 10 XYZ June 80 call options at 9,
The credit = 4.
The maximum gain is the net credit.
The maximum loss is the difference in the strike prices less the net credit.
The break-even point is the lower strike plus the net credit."
Yes you can own one strike price and sell another, but you must have enough in your account to cover margin to do so. Rememember your margin is the difference in strike prices time $100 per contract.