Seems like I can always catch the intermediate bottom while going the wrong way. LDK was at around $20 this morning, decided to write $22.50 strike price calls on them. End of day, LDK is now at about $25, and the calls that I originally sold for $0.60, are now at $3.10. I'm getting raped here, and I'm considering buying them back on any pull back for a loss. That will pretty much wipe out half to 3/4ths of my gains for 08 so far. Gotta do what you gotta do, and I'm not going to try and fight the positive sentiment in the market right now. While it may be true that they are lieing again and that the write-downs are going to be actually significant, once again... in the mean-time, most casual investors will buy into that and start buying up shares. I do not want to be on the short side as this is happening.

I started this morning with 4 short positions, I already closed 2 of them out, but I'm still left with one huge unrealized loss right now on LDK.  

I wish the bear would come back, at least for me to cover and get on the bull. :( 

We (our "day trading team" - we have real time day trading sessions via desktop sharing software at Trading-to-Win.blogspot ) traded LDK on a long side today, one perky stock - went up with oil move ( note divergencies on USO/DUG - I think the move is close to the end ). Bear will be back tomorrow morning after initial pop - don't you worry about it :)

As to your question on Will profits Blog. I am about to earn my wings. If I can catch the market direction tomorrow, I will have 25,000 in my account and I can day trade. Then the fun begins. They have been having a way of going up and down and closing about where it started. It is much easier for me to catch intraday swings than overnight swings. News can kill you overnight. Panicked a little today, but I am set up for tomorrow in a good position.

Options are used to provide cover from large losses. I use them for a different purpose leverage. Looking at the options the LDK calls were only 25 cents yesterday @ $25.00. I know longs do not like to cover with puts. But stocks rarely go to zero. On the other hand many more stocks double. Just a suggestion. It is amazing to me how it is so easy to get myself into a bad position. Good luck to you. That is a hard call for you to make tomorrow.

I guess I missed your suggestion, but are you saying it may be better to sell puts then?

In any case, this account is not qualified for L2 options trading, let alone L3 or higher which is required for selling puts (I believe). So I'm basically left with either shorting the stock outright or writing calls on stocks I have to give me some short positions.

I hope you're right David. :) 

Sell the 22.50 call and buy the 25 call.

I can buy to close, but cannot buy to open. Buying to close is closing out the contract for a written covered call. Buying to open is opening up a contract for a call.

Will, I tried to do it. Because it showed no requirements for L1 & L2, I sent it in. I didn't get approved though; TK said because I am a student, I am not allowed > L1 options trading. They  mentioned some rule/requirement that seems to be from some higher regulation outside of their broker, but I really wasn't sure.  

Ahh...Locog, that just means you can hold on to your money longer.