The markets have been on a high velocity ride upwards. Every news letter on the Internet is predicting or expecting a correction, and have been doing so for the past 4 weeks. On the other hand no body is talking about fundamentals anymore every body seems to be focus on the technicals.
Well this is crazy for now, so at this point is worth buying a few puts and calls on the major indexes and just take a wait and see attitude. This will break one way or the other.
Everybody is expecting a major move after fed announcement at 2:15 pm, my best guess is that we see no action.
Tuesday, March 16, 2010
Thursday, July 10, 2008
LEHMAN don't believe the talking heads on CNBC - Sell, buy puts or stay on the sidelines
This stock has been in a down trend despite all the rebuttal from the company. The only way you make money in Lehman for the past few months is to stay short or buy puts. If you own the stock or bought calls all you have done is lose money. Just like Bear Stearns the rumours were denied till the company went under.
Stocks just don't go down at this rate just based on rumours, there is some real selling going on by well informed players.
I guess the lesson from Bear Sterns is that the well informed players and the market makers have refined their tactics and what we are seeing here is a controlled wipe out. Just look at the way the stock is traded it stays around 20's for a while and they even took it upwards of 24 all within a week, to create a false sense of hope among the uninformed players.
Look at the financials, this company is levergaed 27 to 1, it just does not take that much to implode with this kind of levergae.
If you are ever tempted to buy, please don't catch a following knife. It is okay to miss the first 10, 20, 30 , 40 percent move, if this thing is really going to go up. It saves you from losing all your money in an implosion.
Just look at Etrade, the rumours and the talking heads were cheer leaders till the stock imploded.
Stocks just don't go down at this rate just based on rumours, there is some real selling going on by well informed players.
I guess the lesson from Bear Sterns is that the well informed players and the market makers have refined their tactics and what we are seeing here is a controlled wipe out. Just look at the way the stock is traded it stays around 20's for a while and they even took it upwards of 24 all within a week, to create a false sense of hope among the uninformed players.
Look at the financials, this company is levergaed 27 to 1, it just does not take that much to implode with this kind of levergae.
If you are ever tempted to buy, please don't catch a following knife. It is okay to miss the first 10, 20, 30 , 40 percent move, if this thing is really going to go up. It saves you from losing all your money in an implosion.
Just look at Etrade, the rumours and the talking heads were cheer leaders till the stock imploded.
Thursday, March 27, 2008
Lehman Brothers - Lottery Play
The rumours surrounding Lehman is getting too heated up, so hear is a lottery play
Buy Lehman Brothers April $20 strike price put for $.75 - 10 contracts
Buy 10 contracts of LYH PD at $.75.
Note: This is a lottery play so watch it carefully, Volatility can evaporate very fast if the downward trend reverses -
Buy Lehman Brothers April $20 strike price put for $.75 - 10 contracts
Buy 10 contracts of LYH PD at $.75.
Note: This is a lottery play so watch it carefully, Volatility can evaporate very fast if the downward trend reverses -
Monday, March 10, 2008
SOLF buy March 10 strike 20 contracts Puts
Buy March $10 strike price PUT, 20 contracts @ 1.00
Buy 20 QFG OB at 1.00
Buy 20 QFG OB at 1.00
Friday, March 7, 2008
Sell SOLF (SOLARFUN) June 10 put
Sell Solarfun (SOLF) June strike price $10 Put @ $2.10
Sell QFG RB 10 contracts @ $2.10
The premium is just too rich to ignore.
Trade with care as this market is getting into uncharted waters
Sell QFG RB 10 contracts @ $2.10
The premium is just too rich to ignore.
Trade with care as this market is getting into uncharted waters
Tuesday, March 4, 2008
Lottery Play - Google - over 200% return
Time to take some off the table - the google March 400 put bought at .85cent first recommended on Thursday Feb 28 is now trading at about $3.00. Time to sell at least half and the let the rest ride.
Risk management and not getting to greedy is the key to success in investing and trading.
Risk management and not getting to greedy is the key to success in investing and trading.
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