William B. <in need of a "wiggle" expert> Do you know any way an options trader, can help me wiggle out of the following situation? I would prefer a private memo. I could not find a way to private memo you on this. Thanks in advance, and sorry to bother you with this.
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I am close to deciding to just liquidate my account, and then start trading as I did last year. I need a full service options broker I think, in order to trade my way out of this current situation. i honestly do not think I am able to find the determination, or skill, at this time, to assure myself of being to trade say, one to five contracts at a time.
'''''I own 31,116 shares of the stock dell, and am short 311 LDZAP calls. Schwab holds the premiums taken in, of $1,718,275.00 of course, in lieu of a margin loan. The Schwab statement today, shows me having account equity of $240,236.39 but this does not give me any credit for a theoretical profit of between $2 to $3 per share for the options contracts--about say $70,000 more equity after commissions, it seems to me.
'''''Another account screen of Schwab, shows me having 37% equity at this time, with the stock at a closing price of 80 1/8th on Friday. The same Schwab screen showsw me having a margin buying power of $39,986---going into Monday's trading.
I remember one thing you suggested as a possibility, is whether the call may likely drop faster than the shares, as persons tend to panic in a downward market. But I can see myself in a very tight situation----if I switch from schwab at a delicate time like this, my anxiety increases very much.
There is something to say, for staying with Schwab in this high anxiety time period, and trading using the tiny $39,986 of buying power. If I were to do this, can you suggest what i might consider? Or am I simply limited to SLOWLY bidding to buy back slowly, the written calls. Just trying to pick away at the very thin market. I believe you also suggested, that it depends alot on exactly how the broker's internet screen shows my account. So long as their display is to my benefit, i may or may not be able to trade myself out of this very slowly. |
