Thursday, October 18, 2007

 

Buy - 1 OIH Nov 210 Call @ 3.10

I'll be building up this position with time. I would have preferred Dec expiration, but there weren't any.

Update: Since it moved down so quickly, I might just be throwing more money in a losing position if I add on to this position. I'll just hold this, if I can get my money back, or close to it, I'll be happy.

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Comments:
hey AJ,

just curious...what made you want to enter this position? you feel that oil will go higher? just wondering..

i'm hoping we can get these big down days over by NOV and get healthy for a run to year end!

to answer your question:
AMX (NOV 70 call) - i held through earning like an idiot. i was watching the call volume on wednesday and people were buying blocks of 200 & 1,000 which was abnormal so i held. stupid move but i have a feeling i can make up some of the loss. i will HOLD

AAPL (NOV 185 Call) - we have earnings Monday and i'm nervous. AAPL held up fairly well friday so i'll take comfort in that...i will HOLD

BA (JAN 100 call) - i've been trying to get into BA 'stock' since last january and i noticed that i just touched it's 200MA so i took the trade. i feel pretty good about this but they report next week too and the trend for DOW stock reports have not been good.

i'll tell you though, every correction i learn so much and get hurt less and less every time. that drop from last Feb caught me with my pants down and i said i wouldnt do that again. i think after this coming week i might add a new rule to the book: 'dont hold calls through earnings' but we'll see.

GO SOX!

j.M
 
Hi j.M,
Yes, I was expecting OIH to strengthen going towards the end of the year.. but with yesterdays action, don't think it would be wise for me to add on to this position. As I mentioned, I was looking for a Dec expiration, but since there was none, I went for the Nov expiration, which wasn't too smart.

Good luck with your trades. BA looks like it's range bound, and currently sitting at the bottom of the range, so it could get some support around this area.

You mentioned that you get hurt less every correction.. How're you managing that?

Aj.
 
well i say i get hurt less but it's mostly a function of risk. i used to get excited when the market was good or if i made a few good trades and i would buy everything. now i dont allow myself to have too many option contracts open at any one time in case the market corrects like this. stock can come back after a correction but options, in some cases, may not have the time to come back and i could lose it all.
my plan now is to hold mostly index funds with only one growth name (IBD #1 stock or near to it) and add to the return with options. usually only about 10% of my account is in options.
i also hold cash now so i can add on these dips.

GO SOX
j.M
 
AAPL!!!! and CNH.

Go Sox

j.M
 
Hey j.M,
Nice going with AAPL and CNH. Hope POT doesn't screw me over the day after :)
AJ.
 
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