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Boy can I relate to that trade... Is it greed? Is is an "unanalytical"
approach? Is it the particularly uncertain days of the overall market?
I lost a bundle this month in tech issues and now have a sort of
"traders block".
I just can't pull the trigger these days.
I liked the HUNT analogy: Guess that makes me the hunter who just can
fire.
Lost confidence in my calls. (Bought some stocks for couple days
position trading thinking they were undervalued relative to their peers.
I found out why when they got downgraded and smashed).
Once you have some accidents skiing, guess it takes a while to get back
to it.
Has anyone else felt this before?
Just a thought
Regards,
Tugrul Cavusoglu
Steve Antoch wrote:
> Well, disappointing action for me in MSFT calls (despite the stock
> being up so much yesterday).
>
> Got into the 135 calls last Thursday @ 5 3/8, close to the low of the
> day.
> Bad action on Friday, but the 131 level held on a closing basis, so I
> stayed with the trade.
> Same for Monday, with the Justice Dept. stepping in and MSFT trading
> down to as low as 127 ½.
> The stock came back to close again above my 131 support (stopping out)
>
> point, so I still stayed with it.
> My original plan was to look to sell the 140's or 145's on a rise in
> anticipation of the earnings announcement.
> We never got high enough on Monday to make either of those trades
> worthwhile, even though at that point IV was way up there,\
> so I didn't hedge it at all, even though I knew that IV would drop
> greatly once the earnings were out. The 135's still hovered in the
> high 4's to low 5's range, and selling them out would only lock in a
> very small loss, so I still stayed with the trade. The great news on
> Monday gapped the stock up on Tuesday, and my calls closed up to
> around 7. Usually, I've found when a stock has good earnings news and
>
> it closes near the daily range high on the close, there is a bit of
> follow through (1 or 2 pts) the next morning. I figured I'd wait for
> that and sell out mid morning (Wed), figuring I could pick up another
> half point or so. Well, the combination of Boeing's bad earnings and
> the Justice Dept's lawsuit simply weighed too much, and the follow
> through I expected never materialized. I had moved my mental stop to
>
> my entry, and disappointingly closed it out at just that, 5 3/8 for a
> wash minus commissions.
>
> Well, maybe it wasn't a textbook trade, (it certainly didn't go the
> way I expected), but at least I'll live to trade another day.
>
> Steve
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