I'd been holding FAS for the last few days and sold it today at $4.50 and jumped into FAZ thinking FAS was going to go back to $4. Have more shares than I care to mention (daytrade margin exceeded) with an average price of about $49. Also bought March calls at HALF OF THEIR high for today, only to have them drop to half of that. Down big. Will be forced to liquidate either the calls or the stock if FAZ doesn't hit $47 or so.
Any advice on which to liquidate if I'm forced to? I'm thinking of keeping the stock because the calls will expire next Friday so if FAZ isn't up by Friday, 100% of my options money is gone forever. Meanwhile, I can wait for the stock to come back up to $50 which I think it will eventually.
The flip side is that there's a higher likelihood of this fake-ass rally continuing tomorrow (vs. next week) and if I don't get rid of the shares (which are on margin), they'll drop a lot and I'll be forced to get rid of them even faster. The call options are paid for so it won't matter what happens tomorrow; I'll still have them next week with the hope they'll go up.
Regardless, good luck to everyone.