Bought 10,000 shares @ $43.00
60% on margin
WHAT SHOULD I DO?
I followed those who advised that the company would plug up the oil spill over the weekend...
What can I expect on Tuesday?
At what point would I get a margin call?
Does anyone know what might happen?
Will things stay calm or could todays news that it did not work cause a panic?
I don't understand what might happen and I can't sleep.
And my holiday weekend is ruined.
Please, good comments and ideas.
Anybody who takes on a position like that and doesn't buy some puts as protection, even out-of-the-money puts, deserves what he gets. Like Gordon Gekko said,
"A fool and his money were luck enough to get together in the first place."
Just got a Margin Call
WHAT SHOULD I DO???
Will the PPS recover end of day?
I told them that I would wire in more cash by end of day....
IS THIS THE BOTTOM?
I can't see it going any lower... all the bad news is out....
A. Your broker statement should give you the margin call price.
B. You should never follow some else's advice, especially if they are not a expert in that particular field.
C. These procedures where never going to work and BP knew it in the first place.
D. May true Justice occur by ending BP as a ongoing concern and may the world rejoice in the bankruptcy of a co. with a very lousy safety record.
E. Cost of clean up will exceed 1 Trillion dollars by the time all is said and done.
F. This is the owrse environmental disaster in world history and who knows if the food cycle and ecological systems ever recover.
G. SHORT THIS INCOMPETANT CO. DOWN TO ZERO. IT WILL TANK ANOTHER 20 DOLLARS WHITHIN 2 WEEKS.
Why did you buy in the first place?
---I followed those who advised that the company would plug up the oil spill over the weekend...
That did not happen, so the original reason why you bought(a gamble) didn't turn out, so there is no reason for you to hold. Sell.
---on a side note you said that the chance was 70% success rate.--- Well BP said it was 60-70% chance, but then you also have to take into account BP's margin of error, of at least 10-20%%, (I'd say here in this case 20% on the error to downside- which puts this around 50-50) so you had a 50-50 shot, and all other attempts failed. Historically, Look at ITOX 1 oil spill in Mexico for how long a leak can take to plug(that was just(50 meters down)...
most "traders" do not like to hold positions over weekends, (especially long weekends), and some do not even like to hold overnight! --There is too much time for stuff to go the wrong way(against your position) so for you to take a half million dollar position on a THIS at this time, is pretty much as much as a gambler as you could be... --WHAT SHOULD I DO?--you know what you should do, but no one likes to take a loss, your gamble did not pay off...
If you want to keep BP for the long term, you've got to get off margin. <---- and maybe buy some protective puts to hedge against downward movement...