Thursday, October 25, 2007
Wow .. what the heck was that .. nearly a 20 dollar intra-day move .. I was lucky I was busy with meetings all morning, else I would've definitely sold in panic. I did get out of the meeting for a few minutes to check up on this position .. Down 1K at the open. Not a good feeling. Just walked away from my computer.
I stopped back again in the afternoon put a mental stop below 104, was getting ready to sell the position. Just a minute or so after, it had one of the most phenomenal runs I've ever seen. Still can't figure out the reason, but once it started, a short squeeze must've taken over. Volume on the upside was huge. At one time I remember seeing the spread 12.50/15.00.. scary. I'm still holding onto the position.
I'm not out of the woods yet, but will try to be more careful and not let the position run away from me. One lesson I've learnt though, never trade straight calls or puts on something this volatile... the heart ache is just not worth it.