RE:RE:RE:RE:Cash deposit or selling stocks to meet margin?
w8asec wrote: Lily; Hopefully you have an options trading account and this can provide comfort.
Our reasons for going on margin is to leverage to make a lot more money on our "true convictions" (sadly pro's have access to what is on margin and can short the stock down to force a margin call if that strategy is advantageous to them.
Therefore you are forced into a defensive "retreat' (temporarily)
try selling some SU and then buying call options to replace half to all the shares sold. (Insurance)
...for exanple;
You believe (after Q2 reports SU will soar and you will miss out)
You can buy Sept calls or even Jan, 2023 calls if you want more time.
Sell 20,000 SU shares proceeds = $854,600
Buy 200 call contracts (20,000 shares) FYI - Jan $40. calls sold for $6.50 yesterday, ($46.50 ACB if SU shares soar) - therefore you can still benefit if SU ever rockets to $80 per share and that call contract will cost you $130,000 total ... credit the $854,600 share sale - leaves you $764,600 to pay down some margin calls.
Another choice is to look at my "reballance" post and choose a cheaper stock that was hit harder than SU like CPG and buy calls in them for less...half the cost.
Thank you, my dear, for your advice. I just can't afford to take on any more risk at this moment. Just got another call from TD, demanding me to meet my margin requirement by 1:00 pm today. I'll be absolutely crushed when stocks like BTE, TVE, JOY etc trade for less than $5 because they wouldn't qualify for margin. I bought BTE for over $9 and within a couple of weeks, fell all the way down to $5 and change. Everything else I owned fell almost as hard. Geez... I hope we just go up steadily 1% or 2%/day until we start reporting. I need to see some stability so I am able to think clearly again.
Thank you again for your kindness. It's great to have support and guidance from fellow investors like you. Enjoy your day!