after -777pt DJIA drop predictable “sold off” rebound begins
I didn’t even realize how low stocks sold off until I saw today before the open. I would have traded short-term like 1 day in/out call options on them especially the good stocks. But if you watched GOOG today it dropped again to all new lows. Scary. Very scary, but awesome at the same time if you were playing intraday put options on it. I’ve noticed in my optionsxpress account now whenever I am looking at financial stocks basically all of them say “no short selling allowed”. They are really starting to protect companies too much. If a trader is short selling a company then he is betting on the company falling for good reasons. In the real free markets there should be short selling. If the trader is wrong he’ll lose all his money so the trader must no something.
Although I expect the market to continue falling I can bet the market with such a large drop and even a large come back +5% across the board on indexes will move up one more day before they continue you to fall. Now that I think about it they may just rally into Thursday when the Senate votes on the bail. A great economic blog called Giving Up Control makes some real points about the bailout, congress, and wolves disguised in clothes.
Here are my call option plays for tomorrow:
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This entry was posted on October 1, 2008 by Paul Awol. It was filed under put and call option practice plays, trading stock options and was tagged with amat, bac, fslr, goog, hans, help in, how to, NTRI, NYX, put and call option practice plays, rig, rimm, september put and call option practice plays, sold off stocks aapl, swn, trading stock options, WB.