clean on LM nov 22.5 calls… now waiting for LM in 15-16 range again.
GS: 89.09
GOOG: $315.50 (11/10/2008) I am assuming this is an American option!
Ironman = BOM!
mpnoonan Wrote: ------------------------------------------------------- > Ironman = BOM! I’ve already covered the the trade, lol.
Good thing - It’s not even the Goog puts that are the problem; it’s the GS puts. GS has dropped like 30% in the two weeks since you sold those puts. Ouch.
JoeyDVivre Wrote: ------------------------------------------------------- > Good thing - It’s not even the Goog puts that are > the problem; it’s the GS puts. GS has dropped > like 30% in the two weeks since you sold those > puts. Ouch. yup, I acted pre-emptively each time I sold to minimize the damage. This stock looks finished!!
Time to go long GS. 
JoeyDVivre Wrote: ------------------------------------------------------- > Time to go long GS. Probably, lol.
IronMan Wrote: ------------------------------------------------------- > mpnoonan Wrote: > -------------------------------------------------- > ----- > > Ironman = BOM! > > > I’ve already covered the the trade, lol. Hey IronMan, just curious - how did you cover the trade? Did you buy the stock when it touched $300?
risky, I covered the GOOG a long time ago… margin was too steep for my blood. Just bought back the option.
Whatever chump bought the Nov put from you for 4.10 is laughing their way all the way to the bank 
IronMan Wrote: Date: October 21, 2008 01:47PM ------------------------------------------------------- > Just making a bet > that vol on GOOG will come down. Also, don’t > really think stock will tank below 300. It could > certainly, but not for a while. And at that > point, decay will be eating away most of the > premium so I should at worst, be able to cover > them for no gain or loss if forced to. Date: November 12, 2008 03:01PM SAN FRANCISCO (MarketWatch) – Shares of Google Inc. fell below $300 on Wednesday for the first time since late 2005. Google GOOG 291.70, like other Internet companies, is expected to suffer from a slowdown in online advertising amid the ongoing financial crisis. Google shares fell $16.17 to $295.23 in afternoon trading. Google shares had not dipped below the $300 mark since Oct. 2005. http://www.marketwatch.com/News/Story/Story.aspx?guid={D411634D-E8BC-4EBC-8F3A-73416FA7842D}&siteid=yhoof2
disregard… you covered 25mins after I told you to. Good listening 
IronMan Wrote: ------------------------------------------------------- > risky, I covered the GOOG a long time ago… margin > was too steep for my blood. Just bought back the > option. Ironman, I am new to this, so please pardon my ignorance. So you sold the option at $4. Are you trying to say that you purchased the option at a lower price?
It was a put, so when the underlying (GOOG) falls, then the put goes up in value (all else equal). Buying back the put will have been VERY expensive.
riskyrider Wrote: ------------------------------------------------------- > IronMan Wrote: > -------------------------------------------------- > ----- > > risky, I covered the GOOG a long time ago… > margin > > was too steep for my blood. Just bought back > the > > option. > > > Ironman, I am new to this, so please pardon my > ignorance. So you sold the option at $4. Are you > trying to say that you purchased the option at a > lower price? No I took a loss. When you sell a put and stock falls, the put increases in value as it gives the buyer the right to sell stock at a fixed price. The opposite is true for calls. As Joey said a couple posts above, the GOOG put didn’t really cause me much harm. It was the GS puts that I sold that hurt a little bit…
Did the person exercise the option? I’m new to this, so I’m not quite sure what “taking a loss” is referring to… please enlighten me.
ancientmtk Wrote: ------------------------------------------------------- > Did the person exercise the option? I’m new to > this, so I’m not quite sure what “taking a loss” > is referring to… please enlighten me. no they did not exercise but when stock falls, your options can change in value FAST! Especially when your portfolio is overleveraged. Which means you’ll be getting margin calls from your broker that you have to meet ASAP, or risk getting bought out.
IronMan sure started this thread like a chump, but has stayed in there taking abuse. I think lots of people learned good stuff from this thread. Too bad about the trade, but good job comporting yourself afterwards.
IronMan Wrote: ------------------------------------------------------- > riskyrider Wrote: > -------------------------------------------------- > ----- > > IronMan Wrote: > > > -------------------------------------------------- > > > ----- > > > risky, I covered the GOOG a long time ago… > > margin > > > was too steep for my blood. Just bought back > > the > > > option. > > > > > > Ironman, I am new to this, so please pardon my > > ignorance. So you sold the option at $4. Are > you > > trying to say that you purchased the option at > a > > lower price? > > No I took a loss. When you sell a put and stock > falls, the put increases in value as it gives the > buyer the right to sell stock at a fixed price. > The opposite is true for calls. > > As Joey said a couple posts above, the GOOG put > didn’t really cause me much harm. It was the GS > puts that I sold that hurt a little bit… You are right JDV, especially this comment was insightful. Who would have thought that as price falls put increases in value, and oh man, that it is opposite for calls???