Wednesday, May 25, 2005

Am I addicted to trading?

Well, I made several trades today, even though I was going to try to avoid over-trading this month. I bought a couple of the short-squeeze plays Cramer mentioned in Realmoney.com today. I bought some CIEN common at 2.35 and MLNM Jul $5.00 calls at 3.61. I was kicking myself after the MLNM calls. I noticed that there were august calls were offered at the exact same price...it seems like I should have bought the august calls and given myself an extra month for the trade to work, or attempted to split the bid/ask on the July calls.

RIMM is on my watchlist. Remember I have been trying not to pay close attention to the markets lately, lest I be tempted to overtrade. Well, about 4 minutes before the bell, I noticed RIMM was down a couple bucks and change. I ran the July $60.00 puts through my spreadsheet and they looked like a great risk/reward to sell them at $0.85. Then after I sold them short, I noticed that I had the June expiration date in the spreadsheet instead of July. No wonder they looked so great! I can't remember the last time I traded so closely to the end of the bell, when I didn't make a stupid mistake like this. It always happens. I always tell myself I won't do it again too. The last stupid trade I made near the close was also a RIMM trade in like February I think. The options still are a decent trade. If I allready didn't have a mostly full position for June...I would be interested in selling these for the July expiration. But considering that I allready have a good portfolio almost a month from the next expiration, I would have wanted to hold off for better oportunies.

I guess I was premature in declaring ONXX at a bottom the other day. It has sold off quite a bit and is now near the 25 strike. DY also continued to cause problems for the portfolio today, and closed below the 20 strike.

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