Irrationally mad decision making to obtain the American Dream.

Dicks Sporting Goods (DKS @ $32) up 7% since my last post.

Dicks Sporting Goods stores (DKS @ $32) stock price is up 7% from after I reported on its earnings. The sporting goods retail stock has been slipping with all the other major giant retailers such as Sears Holding (SHLD @ $112) and Macy’s (M @ $30). Since earnings it has risen about $2 after being upgraded the second day after earnings by Citigroup (C @ $31). Practicing the play on options/real trade you would of made a 75% ROI on JAN 30 CALLS for DKS. Bought around $2 and sold around $3.50. Of course you would of traded this if you had your head screwed on straight and were not in demolishing belittling DEC 30 PUTS for Apple Inc. (AAPL @ $171.50) up probably 6 pts from where I bought the PUTS which are going to $0. Yes – yes – yes the likely hood that I could of took a small loss, well big to most people, at -$300 on a $1000 trade (-30%). I’m currently at a value of $250 for my 10 contracts. I think Apple is a hot company, but I was 100% sure this second run one the last until the New Year. I was definitely wrong. I think I need to take a long break from trading any stock. Even a majority of my stock practice plays are failing. I’ve also noticed all my very short-term plays (in and out within 1 1/2 day) for the most part 90% work earning an average of around 5-10% per trade because the stock market is currently going up and down so much that by the 4-7th day in my option practice trade my options intrinsic value is becoming less and less even if the stock is going my way. Something I think is what makes Dick’s Sporting Goods a “hot pick” that is bound to go up is because its brand name is advertised all over ESPN’s basketball and football games. It’s subconsciously telling little boys and girls all over the world to buy from Dick’s. I have a Dicks Sporting Goods in my hometown of Virginia Beach and I have to admit its really simple nice store with a very good selection priced for the average consumer.

Conclusions: Well my DEC PUT is good until December 21st so I have a little less than 30 days for Apple Inc. stock basically to fall to around $150 to become profitable and sell out. I am 100% against depositing money into my account. I just “feel” like I am going to lose it! And any trader’s book says if you feel like you are not 100% confident about your trade you probably should not be trading and likely to lose. I know I have better trading skills then what I have been actually putting out. I need to put more research into trading a stock – before I trade a stock. Currently trades I consider won’t work to practice on ARE WORKING so I know it isn’t 100% my error either. The market is definitely a bit nutty with all this bad credit mortgage news and thriving tech companies.

Below is a 55 minute chart of DKS to show movement:
DKS 55 minute chart
(Click on to enlarge)

Advertisements

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