I'm pissed at myself. I got stopped out of FAS puts first thing this morning. I should have let my long FAS run but I listened to the noise out there. I'm keeping my time spent on trader chats to a minimum and doing what I think is right.
In that regard I see weakness in the follow through rally so I've bought QQQQ puts as well as BBY puts. I have limited position sizing to 5% of portfolio and have stops in place. This time I'm really going to let my winners run...really.
"Adjusted for Inflation, Dow's Gains Are Puny" WSJ
11 minutes ago
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After seeing how RSH reported a few weeks ago, I've been bearish on BBY. I bought April 25s a little too expensive on that day (still learning the options) at 1.85 but managed to flip them for 2.90. I just picked up another batch for 1.40. I'm expecting a fairly weak earnings report on the 26th that should push the stock down 10-15% or so and should push these up above 2.
I bought 5 March FAS $4.00 put contracts right at the close of the market today for $58 each.
This seems like a no brainer. There is no possible way FAS is going to stay at it's current artificial high. It has until next Friday to tank or I'm out $290.
I hope both of you are right because we're on the same side of these trades. :)
No, I am still holding my FAS call options :) I am hedged though, but I want some more profits before going short :D I just cannot imagine anything going up without the financial stocks. Everything is connected tightly. On the other hand, sooner or later I feel another wave of rally is coming. I am just amazed with the hype of tech stocks such as rimm and aapl. They always have some good news under their sleeves to announce after a rally to pump the stock. I think appl is a good short with Steve Jobs condition (although I hope he will recover)
PC, did I not tell you that GE insiders bought a lot of the stock? I read it in legitimate articles. But they also say that it is just to artificially gain investor's confidence. I guessed that without knowing the new just by reading the chart :) I am learning more and more :D
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