Thursday, May 12, 2005

Could you pass me some panic please?

I sold NVDA 20 puts this morning for $0.50. Tech stocks have sucked for so long, and it seems like they've been getting stronger lately. I just thought I should get some exposure to these for the June portfolio. The stock has been trading down for the past few days, and it was up today. I felt a little bit like I was chasing the stock up a little, but I still wanted these options . Apparently NVidia had earnings today after the bell, and they were good. The thing is up another 2 bucks, since I bought it. I feel stupid for entering the position without checking out if there were earnings announcements coming up. I had no idea. But hey, if I made money, I'm not stupid...I must be brilliant right? right? So I guess will just call this a great call on my part!

GS on the otherhand....oh man...GS. Most of the day I was working, and didn't pay much attention to the market. Then, near the close I browsed the quotes and noticed GS was down 4 bucks! I couldn't find any specific reason for this and I believe you shoudl buy panic so I calmly sold the June 90 put. Shortly thereafter I saw on Realmoney.com that there was a rumor that GS has some bond problem unrelated to the GM situation. Now I changed my mind and decided that one should sell into a panic! I immediately began entering an order to close out my May 100 puts...but the closing bell rang just then and so I couldn't enter my order. We'll see tomorrow if that saved me from making a hasty decision or prevented me from cutting my losses...

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