I need advice from any experienced option traders.....
I'm new to this board and I'm sorry I didn't find it sooner because it
may have saved me alot of money. I'm hoping that any or all of you
experienced options players could give me some advice about a situation
i'm in. I've been trading options for about a year. Not alot but I've
been very lucky and made money. Unfortunately, it gave me a false sense
that option trading was alot easier than it actually is. Someone told me early on that the worst thing that happened to them was that they made alot of money on the first option trade and then they went on to lose
alot of money thereafter. Well, that appears to be what is happening to me. Please bear with me on the length of this message but I want to give you all the facts so that you could possibly give me your best advice. I invested in the options newsletter about 3 weeks ago and the one option they really liked was the Dell options. I went ahead and purchased some Aug 105's and Aug 110's. 45 total. I paid 12 3/4 for the 105's and 8 3/4 for the 110's. I realize now I was buying them right after the runup to 118. I think I bought them around 110. Anyway, I'm losing about $25,000. I can't believe that I've allowed this to happen but I kept thinking that it was going to turn around prior to the earnings report. But, obviously, it hasn't. It just keeps getting worse. I couldn't have picked a worse time to step in with such a large investment on such a risky play. Believe me, no one has to tell me how stupid I was to do such a thing and I've learned a ton of lessons because of this but it doesn't help alot as I keep thinking over and over again how much money I've lost. What I need from you experienced investors is your advice on how I can best get out of this situation with as much of my investment as I can. ( i realize it isn't going to be alot, but something is better than nothing). Oh, I forgot, I called my broker on Friday when the stock was falling and I asked if I should just sell and take my huge loss or should I roll over into the Septembers to buy some time. He thought that was a good idea so I rolled over into the September 120's which was one of the picks on the newsletter. I was only able to buy 30 of the Sept's at 3 3/4. Well, after having read this board, I think that was a big mistake. If Dell doesn't come out with outstanding earnings and a split announcement, it isn't going to matter if I've given myself another month. What suggestions does anyone have for me regarding this situation. I was thinking about selling tomorrow morning, watching the stock all day and buying either the August 105's or August 110's at the close tomorrow because I think it might be a down day for it and then hopefully, tuesday might have a little rally going into the earnings
announcement. I just don't have the guts to hold over until wednesday in case there's something negative in the report. The one thing I did
notice as I was tallying up my loss for Friday is that had I just held
onto my August calls, I actually would have had only about a $21K loss
so rolling over into the Septembers actually cost me $4,000. Why was
that? Please, any insight or advice will be very much appreciated and
needed at this point. You can't imagine how I've been beating myself up over this blunder. I just need to try and get out of this situation as best I can. Thanking everyone in advance.....
Robin |
