Wow, great day in the market and I wasted it with that silly Google trade.
You can witness the nightmare of option trading by reading my comments to the trade of the day. I pulled it with a 50% loss on the $2 option, you have to have a sell discipline otherwise you can end up with nothing. I will still buy puts tomorrow for .50 or less because any shift below $400 would be a nice profit but this is only a lotto-type trade, not for real investing.
I did call the top at $404 last week (well, its the top today anyway) and I still really believe in the retraction but maybe not because of Yahoo’s stellar performance (see my post “Must Read from the Journal”).
NKE is up, great sign in face of that bad article.
VLO went down all day so no trade on MUR which also went down slightly. Dec. $45s are now trading @ $4.20 and the oil sector was pretty flat in general today.
DHI went on a tear today with a 5.72% gain.
The AAPL Jan ’08 50s recommended on the 11th are already at $25! A nice 25% gain. If you follow this trade through without being greedy you either cash out now or sell the December $70’s for $1 and start drawing income.
The Dell Jan ’07 $30s are up to $4, a 30% gain since the 11th. Same as Apple, either sell the calls or place a tight stop.
Play stalled out so my $25 calls were a waste of .35 – made up for it on the $22.50s though.
HET finally caught fire today! Up 1.5%
Ebay up huge today (3%) just one day after my rec. Does everyone read this thing?
BCRX up 6% today.
GM is giving us yet another chance to short them!
MOT – huge day! Up 3.3%
Per my article “Pension Pressures” you could have thrown a dart at the brokers and picked a winner.
Well, one more crazy option day then back to reality!
– Phil
