Thursday, February 05, 2009
So yesterday I flipped the Nasdaq-100, the QQQQ nicely for 1.05.
Today I shorted it again, into the rally. I sold at 30.07 and stand down .50 to its closing price.
Now, as for this Goldman Sachs debacle. I'm down 20 points in, what, a mere 2 weeks?
This small position is doing its best to burn a hole in my BIG account!
Volatility (option) is sky high but I bought some puts regardless. I added a few Feb 90 puts at an average cost of 5.20 apiece.
When premium is this expensive it's advisable to just short the stock. But this ticker scares me; it always has. I wouldn't be surprised if it gapped up 25 points. So, with the puts, I am paying up for a little less risk.
TODAY is a far more typical trading day - riding out and doubling up losers - than yesterday's anomaly.
I think it was 3 degrees this morning. I wonder what the low was today in Naples....
By the way, it's a cruel thing to walk around Boston with a tan in February, bragging to all within earshot that you've just spent a month in Florida.