Irrationally mad decision making to obtain the American Dream.

Posts tagged “buying call and put options

I couldn’t be 100% more wrong. Wishy-washy indecisiveness with markets

So all my short term plays yesterday would of failed today, 100% of them. Stocks have been going up and down each day as if each day is bearish or bullish day. What you think is going to happen next is probably the complete opposite.

Lets looks at Citigroup (C @ $31.32). The entire day the major headline was “Investment group buys 5% stake in Citigroup” basically optimistic positive news article thinking there must be a gem hidden in financials since this investment group is buying them even though again all these banks have billion dollar losses! Although Citigroup really failed to move everything else sure did. I can’t express how I feel about this volatility. If I was sitting at my computer all day and was willing to trade intraday I might really dig it, but when you are trying to trade short term weekly trades this jumpyness hurts. All of my stock market muscles are being broken, pulled, and weakened. I’ve yet to have a come back, make some touch downs, and get back into the game healthy. I’m hurt and probably will be on the stock market sidelines for a very long time. My account now says a balance of $300. “Wow”. Well that’s life for yah, well for me at least.

I’m going to read my bible tonight. I’m going to read it until I read myself to sleep. I’m not much of a bible reader, but I need to start learning better discipline then what I’ve been acting on lately. I know I’m putting what talent I do have trading stocks to the trashcan and if I keep it up I may never trade again because I won’t feel confident enough with so much regret.

Amazingly enough from what I was taught at the end of November stocks are suppose to have a run and move up. So maybe even with all this downside this is that run during the last week of Nov. and I’m playing Puts instead of Calls because I’m so confused. If you aren’t confused and you are making 100% profitable trades then I’d sure likely to know what you are doing.

Now as for practice trading goes I’ve actually have done pretty well for a large majority of my trades on paper. It just seems when I do it with real money I get greedy and then I get slaughtered. Seems like the past four days stocks have trades higher at least for technology. As for financials stocks of fallin except for today. When will all these billion dollar losses change the market? Are all the falling stock prices already priced into the billion lossed? Hmmm….

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Choppy fall markets continue with late day sell offs and rollercoasters!

So I’m in San Diego, CA on my north patrol portal. This is my first of many I suppose if our boat keeps working. The stock market has been ruff as usually simular to Alaska waters. I uploaded many technical analysis on stocks charts so be sure to see them (flickr pics on right side).

So I’m thinking after looking at many charts that the markets trend is still going down.

My practice option trading would go something like this: [short term plays]

BUYING CALLS on:
Southwestern Energy Company (SWN @ $49) – hitting bottom BB’s with strong trend up with raising oil prices increasing more popularity for energy to increase.
GameStop Co. (GME @ $51) – following strong uptrend and has been sold off even though it is the number one electronics game retailer. Every kid, teenager, and dad goes to this store to buy new and used games. It’s hot, and going into christmas its sales should increasingly rise.

BUYING PUTS on:
Apple Inc. (AAPL @ $172) – Hot product, high price, but currently tech and the entire market makes this stock so vulnerable to any move and I think the next move will be down.
Sears Holding Co. (SHLD @ $107) – Super company, lowering peg, but it seems retail just isn’t the industry to be buying in at the moment. Big downtrends and probably will see lower prices before buying happens.
Macy’s (M @ $28) – Again. Mega store everyone knows, but not in the buying club at the moment. Is anything? Low peg, lots of value, but no buying into it.
Goldman Sachs (GS @ $207) – This financial stock even though has losses is one of the better value you ones that won’t be held down for too long. Low peg of .70, low PE, but the banking stocks are just in crutches. The only banking stock I think should outperform all the others besides losses is Bearsterns (BSC @ $91) because its book/price is $86. I think it will keep bouncing off this support price. Peg currently at 1.06. I think this is the best play if buying CALLS. BSC will be the first to back to its highs, at least I think.
Citigroup (C @ $31) – This stock is going to its grave in my opinion. Mega huge banking system that I feel hasn’t got credit for the billions it has lost yet. But nothing can beat Country Wide financial (CFC @ $8) – This thing is going to $1 in my opinion. Mega PUT stock. You could probably get rich playing PUTS on it if you were smart and had money left to trade.
Google (GOOG @ $666) – Note the price! Scary huh? Stock charts show GOOG flipping over and about to be sold, at least short term. Peg is 1.26 not bad for a $600 stock which really says something, its going higher!
Nutri Systems Inc (NTRI @ $25) – This stock just has big pops (big white canldes) and then tanks. Sell offs. Funny thing is that its peg is like only .36 or something right now. IF IF IF it proves still to have good growth next quarter this stock is going to jump probably 30-50% in one day. Sounds crazy, but I could see it happening being sold off like an ugly stock now, but it is also getting all these lawsuit cases which probably isn’t helping publicity to want to buy it either.
Mastercard (MA @ $181) – Hot stock, super product. They basically just make millions a day off dumb consumers spending credit cards and never paying them off. I’m really not sorry if you are one of them. You have a choice, which is why this stock is going higher, but in the mean time it looks like it is being sold off some.
Ocean Outrigger (RIG @ $129) – RIG looks ready to fall some. Major growth and long-term CALL play in my opinion with rising oil prices.
Dicks Sporting Goods (DKS @ $30) – recent +7% just went to 0%. Falling charts makes this a short-term PUT play. Lots of Tv advertising you should be noticing especially on ESPN. They want to be a number one sports retailer and they are doing the right things to get there and stay there for a while.
China International Index Fund (FXI @ $168) – This stock has been falling and will continue to with the markets/asia markets. Charts show more selling coming.