Mon, Sep 1, 2014, 8:34 AM EDT - U.S. Markets closed for Labor Day

Recent

% | $
Quotes you view appear here for quick access.

Rackwise, Inc. Message Board

  • smac6933 smac6933 Sep 7, 2007 11:10 AM Flag

    Both Farrtrade and Global shorted AMZN calls

    And they think this merely raises their short price???

    Wow.

    Example:
    They shorted BIDU calls (i.e. sold calls naked) when it was $100. They received $5.

    BIDU reported that night and the stock jumped $40 to $140.

    They THINK they will be assigned at $105. They're wrong. They're on the hook for a nice $35 loss, or 700%!!!

    Farrtrade and global_warming, funny how you never show anyone how I'm wrong.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • why even response to those retards. just ignore them!

    • It is definitely NOT the same fukcing thing as shorting the stock at $55.

      AMZN goes to $70, by shorting the stock, you're down 40%.

      By shorting the calls naked, you're down 700%.

      How the fukc is this the same thing???

      Man, you really have your head up your ass.

    • i did not. i only tried to educate you, so you stop making a bigger ass out of yourself than you already had.

      let's try again: Shorting Call Options 101


      let's use your favorite example, AMZN and assume your for a moment someone is bearish on AMZN and stock is trading at $50. Now as a bear you have several choices:

      1) you can buy puts
      2) you can short the stock at $50
      3) you can short the calls, say $50 calls at $5

      if you short the $50 calls at get $5, and stock goes above $50 by expiry and you get exercised, you are effective SHORT the stock now, except you short price is $50+$5= $55

      so...i assume you're at least a little bit of a intelligent person. what do you prefer here, being short at $50 (in the case of having shorted the stock) or $55??? the answer is $55 idiot. so now be quiet
      shorting calls is a strategy which allows you to receive a higher price for your short position. get it now, STUPID??

      • 2 Replies to gobal_warning
      • You're wrong.

        Tell me this using your example:
        If AMZN reports after hours on the day you sold your calls naked, and the stock jumps to $70, what is your net the next day?

        Just answer that. Thanks.

        (PS. In your example, I agree 100% with you: IF AMZN stays at $50, you're ahead $5. My entire beef with you and Fart is you're ignoring my factual statement that your risk is enormous, and actually happened to Fart on both AMZN and BIDU. But I digress, please answer the above: what happens if AMZN jumps $20 in AH?)

 
RACK
4.20+0.70(+20.00%)Aug 29 3:26 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Avago Technologies Limited
NasdaqGSFri, Aug 29, 2014 4:00 PM EDT
Criteo SA
NasdaqGSFri, Aug 29, 2014 4:00 PM EDT