Should I panic about my short position on Apple calls?

[N Rothschild]

might wana try reading it again.

 

[Jack o'Clubs]

might wana try reading it again.

Just did, more slowly. What have I missed? He sold 90 AAPL calls at 470 strike, Feb expiry. 10% CBOE margin (plus whatever your broker adds on for good measure) would have been about $450,000 margin at the time of his post.

 

[N Rothschild]

seems it was me missing something

 

[scose-no-doubt]

I always assume 1or 2 are actually sold (same with people on here who are trading 50 lots, £200/pip etc) and the rest is added for big shot status.

 

[Timetraveller]

I thought I was playing it safe when I sold 90 Feb. 2012 Apple calls at 470 strike price. Apple announced earnings today, and its stock rose from 420 to 450 in after hours trading. What are the possible approaches?

If I want to speak with an expert and get their advice, who would you recommend? How do I even find people to talk to online?

Thanks in advance!

You sure are a cowboy...

Didn't you notice the elevated implied? The stock was a guaranteed mover. Short options are always to be worried and thus, accordingly, very thoughtfully entered into.

Your first step and best step to avoid financial ruin would be to stop using your broker's awesome software that provides VAR or "probability of touching" analytics.

But I'm sure the trade worked out well for you... Apple expired well before it hit 470.

Enjoy!

 

[scose-no-doubt]