Irrationally mad decision making to obtain the American Dream.

AAPL OCT 170 CALLS sold out up +25%, GOOG earnings

Okay so to finish from a few days ago I bought AAPL calls going up and I was sold out the falling morning for $2.60 up 25%. I wanted to trade into GOOG earnings, but with a small amount so I only traded $1000. Again I was probably being too greedy. I could only buy 1 contract and I did at $10 for GOOG NOV 690 CALLS, but I should of put my GTC order at $11.50 or $12 at the most. Early morning trading the next day the option only went up to $12.60 so if I only put it up a dollar or more I would of been sold out with a 10% profit. I put my GTC order at $15 because I thought GOOG which his $658 would of rose $5 since I was closer to in the money, but I was wrong. I also slept it! I put my alarm for 3:30 AM to get up right when the market opened so I could sell out, but I slepted in an hour and that cost me $300. I sold out at $7 with a $300 loss. I’m actually happy I loss only $300 because if I would of stayed in I’d lost a bit more. This is what is confusing: I bought my option when GOOG was at $639, but my option fell $3 dollars even when in the next morning it was up $9. You’d think my option would of went up with the stock instead of fell. How is this possible? I figured it had to do something with expiration Friday for options. My call option fell $3 even thought GOOG’s stock went up and held at $9 so like $648. I don’t know why my option fell so much but it did. I think for now on I’m not going to buy calls near expiration Friday. They must adjust the price or something. Anyway GOOG earnings should help the stock rise. The Dow drop of -$366 pts is termporary and I definitely expect Monday or Tuesday next week to have a pop and push the market higher after this big pull back.

Stocks I’ve been keeping a close eye on are FXI, GOOG, AAPL, NUE, SHLD, RIG
FXI is due for a correction with the asian markets. Just recently it has fell 18 pts within a week. If it breaks its major trend I might buy a crap load of Puts on it. AAPL’s earnings are OCT 24th and I might play Puts on it because historically Apple during earnings falls every time.
With NUE steel is starting a strong uptrend helped by X. SHLD is just very volatile and I’m looking for entry points since it is going sideways now. Lastly RIG had a peg of .41 does anyone know this? This stock has continually gone up its trend and if does at $112 it will start bouncing back up again to a higher price.

Advertisements

6 responses

  1. Hey you sound like a Fast Money trader (cnbc):) Do you watch that show?

    October 21, 2007 at 2:03 am

  2. Hey Tyler. Thanks for the comment. I’ve seen the show maybe once. My mom is a BIG fan of Jim Crammer. Personally I hate the guy because she buys everything he says and loses all her money instead of practicing and doing her own homework. Good luck on your trading -fn

    October 21, 2007 at 3:08 am

  3. Travis

    hey ninja,

    I have some aapl stock. I was getting ready to sell at its 52 week high of $192 last week but got greedy hoping it would hit 200. Now today its down to high 150’s. why is it falling daily? Im loosing alot of money here, i bought it at $94. Whats going on?

    November 12, 2007 at 8:14 pm

  4. Travis. You are losing money because #1 you are greedy and #2 you are looking at old posts! Ask my sister. she’s the expert and right. I have not been viewing futures and djia’s charts. Believe me this was the unexpected – exception. If you read books and the stock market almanac you’d find out years in 07’s in exceptions have crashes in the fall months. I’m totally whiped out myself thinking apple was going to go up into the fall months, but if I’d watched the big dog charts I would of saw the major trends going down not up. well luckily you did sell out so you can buy aapl back in the 120’s. It will go to 200 I’m pretty sure, but you might have to wait until next earnings and after the market settles.

    November 12, 2007 at 8:51 pm

  5. Travis

    i did not sell, still holding onto my $94 buy in’s. im fairly new to the whole market but you had a profound impact on me when you said im reading old posts. in such a fast changing environment, reading old posts seems counter intuitive….know of any sites that post tomorrows results today? Thanks 😀

    November 13, 2007 at 4:19 am

  6. travis,

    wait you are right. reading old posts is an awesome source of past history to trade on current news that might reflect the same thing that happened last year – hence history is gold.

    but you definitely have to be watching new material. i think use to blog more. i’m about to go underway at sea again so i’ll probably be blogging more daily on stuff i see, read, and interpret.

    There are a lot of good blogs. But they are just blogs. I suggest watching CNBC closing bell with that hotass reporter. she’s beautiful and incredibly smart. You’ll probably get all the headlines watching that 1 hour show. Turn it off when crammer comes on. he’s a great guy and smart too, but too many people buy his picks immediately and lose (unless you are already in the stock). read books. Jesse Livermore, Intro to Options, Chart Technical analysis anything you can get your hands on. Just goto amazon.com and buy everything used just stacks of books and leave them near the toilet. Then take a lot of shits and read a lot about stocks. genius huh? well peace bro.

    -fn

    November 13, 2007 at 4:54 am

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s