Thursday, February 12, 2009

A wild day and the lessons

  1. Market started 1% lower at open and continued to fall. SRS jumped 5 to 65, and after a while at 8:30AM, my QQQQ 30 puts was at 0.9 (bought at 0.7) and SRS over 66; AZO at 136 and AMZN at 62.8.
  2. Someone in xTrends were covering shorts and I was laughing at them.
  3. Then it turned. At 11AM, SRS was dropping to 64, then 63.6, I closed AZO at 137.88 (Low was 135.9) and AMZN as 64.1! Fuck!
  4. Then it turned again, I canceled SRS order at 66.8. And SRS hitting over 70 at 1PM and QQQQ puts again recovered from 0.58 to 0.97! I was laughing again, promising to close them one more day tomorrow monring or if it dived 5% on the day (at the time, Dow was down 3% and Nasdaq 2.3%).
  5. Then it turned again. I sold SRS at 67.1 and closed AMZN at 63 (Shorted at 63.76, Low for AMZN was 61.9). Then some news coming out the the rally continued. Dow closed down 7 after down as much as 245 and Nasdaq up 0.7%! WTF. AZO closed at 139.9 and AMZN at 64.7. ALso sold FXP at 38.2 and it closed at 37.3. SRS closed at 61.4!!!!!!
  6. If I sold my puts, I will be 2.5K richer! Now Feb. put is down 30%, was up 30% just 60 minutes ago. March puts are down 30%!
  7. I did my best to escape.
  8. I found two things:
  9. Solid entries.
  10. Great exits.
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