Wednesday, May 28, 2008

the fear of loosing took over....

I started the day @ 8am..

My FSLR puts where higher then my purchase price as of yesterday, the stock (FSLR) has moved down...?

I had the feeling all day yesterday, that as soon as I open my screen in the morning, FSLR would be up $10 and my puts would have lost 1/2 of their value... since that has happened twice last few weeks...

But to my (pleasant) surprise the stock was lower from yesterday's close... now it made me feel better as I decided the to let the stock go further down (not taking my profits at that time)... I left for work feeling relieved... as I arrived at work FSLR seemed to have reversed course and started bouncing back in the positive territory... I immediately felt the disappointment... and the fear of loosing took over....

I watched my puts loose value slowly... the pleasantness I had felt in the morning was gone now...

As FSLR bounced back and forth between +ve and -ve territory... I started observing the calls, and noticed they were moving up with increased volume...as was the stock, its volume was much more today then yesterday's.

I became more fearful that the Put was going to loose value quickly, I sold the put for -$1 loss(bought for $16 sold for $15, it did close @ 12.5) ...

I kept observing the stock, I noticed it moving from red to green area back n forth... I felt this must be the best time to buy a call and I did, buying a call of the same strike price as was the put ...

Not only did I buy two calls on FSLR I also bought a call on GOOG... for some strange reasons...

Close to the end of the day, I saw both the stocks moving higher...this made me feel better... thinking, I took the right action... in that moment of happiness, I bought 2 more puts on MER....

those puts had shown the largest volume (approx. 10k) from my options screen (of high volume options) ...

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