Sunday, October 07, 2007
I added to this position on Thursday when it took a dive. I really don't think that was a smart play, since the market could have turned either way on the jobs report the next day. Luckily for me, on this trade, DRYS did go up the next day, so I was able to close it for a small profit.
When I purchased the first option, I mentioned that I would add to it if it went above 100.20, well, I didn't add to my position, but if you look at the chart, it did take off after crossing that point, by about 2 bucks or so. Unfortunately, it came crashing down towards the end of the day, and I closed my position.
DRYS is a very volatile stock, and I sometimes think it's better to hold stocks in it rather than options.
Currently, I'm not holding any option positions, which could be a good thing, since I do a better job looking for good trades, rather than worrying about how my current option positions will do if they go against me.
I'll try to post some charts tonight. The market does look a little overbought, so it could pull back this week. IBD has highlighted a lot of 'buyable' stocks, so that could make things interesting.
Labels: DRYS profit