Tomorrow is options expiration Friday. I will be at the computer all day figuring out how to manage different trades. If anyone has a question about whether or how to roll any of their positions then post a comment to this post. Let's work together to survive and make money in this crazy market.
I will be watching the Asian markets closely this evening. I'm not optimistic. We have breached Dow support levels and it's a scary time. If you haven't bought your protective puts it's still not too late. After all of my harping about hedging I hope none of this blog's regulars get caught without protection. One of my favorite Warren Buffett quotes is "It's only when the tide goes out do you find out who's been swimming naked."
"Adjusted for Inflation, Dow's Gains Are Puny" WSJ
11 minutes ago
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9 comments:
Although I would have had good gains on my covered calls 1 week ago, now I have loss on all of them. I closed about a third of my positions today and regret why I didn't the rest of it as I think it will continue to fall. It is a nightmare to roll over to the next month and get stuck with some more loss. I wish the options expired last week as I was already thinking about changing my strategy. Well, I won't give up but think it is better to accept the loss and use the same money in the right investment or at least to write naked puts instead. What do you think?
Please keep me posted early in the morning tomorrow. I am already nervous. I am sure if I close my positions tomorrow, we will have a big rally right after :)
Smart - did you write your covered calls in the money? I'm sorry I forgot your trades. If you want to post the ones that you're still holding I'd be happy to go through them with you. 2 heads better than one...
Yeah, I'll be trading and blogging all day tomorrow. I've got some precious metals ETF covered call trades that are in the money that I'm going to have to roll...
Stay loose my friend and buy more protection if you're feeling uneasy. I did yesterday and am glad I did.
PC,
I already have fell below margin. I don't like the idea of covered call anymore as there is no way out. There were times I had good gains if the options expired, but I got out I would have had either no gain because the calls were inflated or just a bit of gain. Yes, I did write them in the money. Anyways, these are the stupid trades I am left with:
URE with covered call at $4.00
FAS with covered call at $7.50
C with covered call at $3.00
ERX with covered call at $35.00
They seem very stupid. I totally agree. The bad thing is that my broker wants me to buy to close the almost expired option before I can sell the stock. So, I have to accept some further loss for something impossible to be able to get rid of the stock. But I am so frustrated that I want to just accept the loss and do it. Although usually in these situations, there may be a good news on the weekend and a rally on Monday. But I cannot spoil my weekend just because of holding some stupid stocks. The only one I like to keep is ERX and UCO. What do you think?
Smart - I sent you a reply email because this page wasn't coming up for a minute...
You don't have my email. Do you? Anyways, I accepted the loss right at the beginning of the session although it looks like market is going for a rally. That's me. But I don't regret it. I feel better. I kept my ERX and UCO as I heard bullish things about them.
Smart - I replied to the email I got whenever there's a post. I guess it went nowhere. Anyway, I wish you got it because I was urging patience because the market could rally. It seems the fear was highest early on. I thought ERX would be the one you'd keep and to dump financials and real estate. Sorry, it was a crazy time for the site not to work...
now a downturn?
we all need a rally. don't forget that option expiration day is known to be very volatile.
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