FXI Puts – $990 even though technical indicators showed otherwise, + SHLD Nov 130 Calls
This morning I knew the market was going to pop from Fridays sell off. AAPL was up going into earnings currently at $174. My prediction is that it will sell off after hours if it repeats itself from many other earnings and then will continue to move up. FXI has been popping out of the bollinger bands and has fallen the past 3 days. I guess Friday was the better day to play puts and I would of been out profitably. Although it will close under the down trend I sold out of my position because FXI was changing direction I lost -$990. I’ve been wrong before about FXI. Right when I think there will be a major Asian market correction from peaking so high it falls a little then just spikes up higher so I’m not going to play my odds just incase it does pop open tomorrow and follow its big uptrend. I’d rather lose $1000 then $5000. As for SHLD it has been getting good exposure and all of retail stocks today broken about a 15 day down trend with a big white candle. If retail holds ground I can see SHLD easily hitting $140. I’m currently up $350 in my Nov 130 Calls. I now have to regain back the -$990 I lost at the same time. I’m slowly gaining the discipline to sell out even if tomorrow FXI drops and I was correct about the new direction of the trend. Today looked like a very good entry point on both. My first mistake was doing two trades at the same time. I kept telling myself missed money is better then risked money, but of course I still traded.
I was going to do a Put trade on AAPL earnings because even when they are great the stock falls. But instead of possibly losing more money I thought it would be a wiser decision to buy AAPL options after earnings. If AAPL does fall 3-5% lower then buy it at that entry point if earnings are good.
I’m really trying to do as many practice trades as possible, 10-20 for every real trade. I just need to only trade the stocks I practice and it should keep me in check. I really want to pay off some items to clean up some good and bad debt. One being my car which is a $20k trade, my mobile home park loan $80k, and my student loan $40k that helped me buy the real estate.
Did I also mention I need $13k to buy these two new trailers to rent in my park and possible 3/1 home for $13k? This stuff adds up!
This entry was posted on October 22, 2007 by Paul. It was filed under apple earnings, fxi, paying off debt, retail stocks, shld, trading options .
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