walking into the fire

[peterb]

The corporate representatives in congress will probably get something out of this by Friday. So this should be a good week to buy puts and get some shorts. Or sell those crap equities that have been tanking most of the year. DOW at 9000 be December looks pretty possbible now.

I am very tempted to take a bite from the buiilders. TOL, LEN and CTX may be ready to adjust in the next couple of months. I think good old TIF may be ready as well.

[stockstradr]

Assuming your 2X s&p position was taken before open of business today, you’re up almost 9%! Not a bad return for a whole year. Spectacular for just one day! How long to plan to let it ride? When do you take profits?

Honest answer? I only bought SSO with 10% of my portfolio yesterday, and the markets fell another few percent after I bought. So today I’m “only” up 4.4% on that particular position, which you must divide by ten to estimate contribution to overall porfolio. (A big 0.44%)

However, early this morning I also bought another 10% of my portfolio position 2X long the NASDAQ (ProShares QLD) after I saw markets moving a direction I liked. I’m also up about 5% in one day on that particular QLD position.

When gambling and this is gambling, I first take a nibble. Then if the market moves in direction confirming my initial prediction, then I take another nibble. (Pigs do get slaughtered, after all)

However, 25% of my portfolio remains gold “GLD”, and today’s paper losses in “GLD” are about equal to my paper profit in those other two long positions described above! So today is a wash.

So far, I’m thankful I sold half my gold yesterday, taking profits. So far, my hunch was right that gold will fall as stock markets now go into Fool’s Rally mode

As soon as this Fool’s Rally is near completing a total up move of 10%, I’ll dump my long positions on the S&P500 and NASDAQ. Markets are very nervous so less likely to reward with a big Fool’s Rally. We’ll be lucky to see 10%…unless the congress comes through by passing a gratuitous bail out package. And we are already HALFway towards completing that 10% Fool’s Rally, aren’t we?

[stockstradr]

Assuming your 2X s&p position was taken before open of business today, you’re up almost 9%! Not a bad return for a whole year. Spectacular for just one day! How long to plan to let it ride? When do you take profits?

Honest answer? I only bought SSO with 10% of my portfolio yesterday, and the markets fell another few percent after I bought. So today I’m “only” up 4.4% on that particular position, which you must divide by ten to estimate contribution to overall porfolio. (A big 0.44%)

However, early this morning I also bought another 10% of my portfolio position 2X long the NASDAQ (ProShares QLD) after I saw markets moving a direction I liked. I’m also up about 5% in one day on that particular QLD position.

When gambling and this is gambling, I first take a nibble. Then if the market moves in direction confirming my initial prediction, then I take another nibble. (Pigs do get slaughtered, after all)

However, 25% of my portfolio remains gold “GLD”, and today’s paper losses in “GLD” are about equal to my paper profit in those other two long positions described above! So today is a wash.

So far, I’m thankful I sold half my gold yesterday, taking profits. So far, my hunch was right that gold will fall as stock markets now go into Fool’s Rally mode

As soon as this Fool’s Rally is near completing a total up move of 10%, I’ll dump my long positions on the S&P500 and NASDAQ. Markets are very nervous so less likely to reward with a big Fool’s Rally. We’ll be lucky to see 10%…unless the congress comes through by passing a gratuitous bail out package. And we are already HALFway towards completing that 10% Fool’s Rally, aren’t we?

[stockstradr]

Assuming your 2X s&p position was taken before open of business today, you’re up almost 9%! Not a bad return for a whole year. Spectacular for just one day! How long to plan to let it ride? When do you take profits?

Honest answer? I only bought SSO with 10% of my portfolio yesterday, and the markets fell another few percent after I bought. So today I’m “only” up 4.4% on that particular position, which you must divide by ten to estimate contribution to overall porfolio. (A big 0.44%)

However, early this morning I also bought another 10% of my portfolio position 2X long the NASDAQ (ProShares QLD) after I saw markets moving a direction I liked. I’m also up about 5% in one day on that particular QLD position.

When gambling and this is gambling, I first take a nibble. Then if the market moves in direction confirming my initial prediction, then I take another nibble. (Pigs do get slaughtered, after all)

However, 25% of my portfolio remains gold “GLD”, and today’s paper losses in “GLD” are about equal to my paper profit in those other two long positions described above! So today is a wash.

So far, I’m thankful I sold half my gold yesterday, taking profits. So far, my hunch was right that gold will fall as stock markets now go into Fool’s Rally mode

As soon as this Fool’s Rally is near completing a total up move of 10%, I’ll dump my long positions on the S&P500 and NASDAQ. Markets are very nervous so less likely to reward with a big Fool’s Rally. We’ll be lucky to see 10%…unless the congress comes through by passing a gratuitous bail out package. And we are already HALFway towards completing that 10% Fool’s Rally, aren’t we?

[stockstradr]

Assuming your 2X s&p position was taken before open of business today, you’re up almost 9%! Not a bad return for a whole year. Spectacular for just one day! How long to plan to let it ride? When do you take profits?

Honest answer? I only bought SSO with 10% of my portfolio yesterday, and the markets fell another few percent after I bought. So today I’m “only” up 4.4% on that particular position, which you must divide by ten to estimate contribution to overall porfolio. (A big 0.44%)

However, early this morning I also bought another 10% of my portfolio position 2X long the NASDAQ (ProShares QLD) after I saw markets moving a direction I liked. I’m also up about 5% in one day on that particular QLD position.

When gambling and this is gambling, I first take a nibble. Then if the market moves in direction confirming my initial prediction, then I take another nibble. (Pigs do get slaughtered, after all)

However, 25% of my portfolio remains gold “GLD”, and today’s paper losses in “GLD” are about equal to my paper profit in those other two long positions described above! So today is a wash.

So far, I’m thankful I sold half my gold yesterday, taking profits. So far, my hunch was right that gold will fall as stock markets now go into Fool’s Rally mode

As soon as this Fool’s Rally is near completing a total up move of 10%, I’ll dump my long positions on the S&P500 and NASDAQ. Markets are very nervous so less likely to reward with a big Fool’s Rally. We’ll be lucky to see 10%…unless the congress comes through by passing a gratuitous bail out package. And we are already HALFway towards completing that 10% Fool’s Rally, aren’t we?

[stockstradr]

Assuming your 2X s&p position was taken before open of business today, you’re up almost 9%! Not a bad return for a whole year. Spectacular for just one day! How long to plan to let it ride? When do you take profits?

Honest answer? I only bought SSO with 10% of my portfolio yesterday, and the markets fell another few percent after I bought. So today I’m “only” up 4.4% on that particular position, which you must divide by ten to estimate contribution to overall porfolio. (A big 0.44%)

However, early this morning I also bought another 10% of my portfolio position 2X long the NASDAQ (ProShares QLD) after I saw markets moving a direction I liked. I’m also up about 5% in one day on that particular QLD position.

When gambling and this is gambling, I first take a nibble. Then if the market moves in direction confirming my initial prediction, then I take another nibble. (Pigs do get slaughtered, after all)

However, 25% of my portfolio remains gold “GLD”, and today’s paper losses in “GLD” are about equal to my paper profit in those other two long positions described above! So today is a wash.

So far, I’m thankful I sold half my gold yesterday, taking profits. So far, my hunch was right that gold will fall as stock markets now go into Fool’s Rally mode

As soon as this Fool’s Rally is near completing a total up move of 10%, I’ll dump my long positions on the S&P500 and NASDAQ. Markets are very nervous so less likely to reward with a big Fool’s Rally. We’ll be lucky to see 10%…unless the congress comes through by passing a gratuitous bail out package. And we are already HALFway towards completing that 10% Fool’s Rally, aren’t we?

[Coronita]

[quote=fat_lazy_union_worker]I’m debating what I should do before today

1) Close out my position in BAC opened yesterday for a 12% profit, or

2) Write some covered call, expiring Oct 18 with a strike price $35/share with an option contract at $2.24, to see if I can book a larger profit if a bailout happens, while reducing some of the potential fallout if another bailout isn’t gonna happen.

Selling a $35/share covered call with expiration in 3 weeks, I can pocket $2.25, so if the bailout does propel BAC, I’ll book a $5 profit + the $2.25 option price.

In the event the bailout doesn’t happen, BAC tanks the covered call expires worthless, so I’ll get to keep the the $2.25/share, plus whatever price BAC fetches, which means my cost basis would end put being around $27.85 before i lose money….

Hmmmm decisions, decisions. Thoughts? Yeah it’s gambling. So what….
[/quote]

Never mind. In at $30.25, out at $38 today. That was fun….Next up, GE… If warren buffet is investing $3billion in it, can’t be a dumb move, right? 🙂

[Coronita]

[quote=fat_lazy_union_worker]I’m debating what I should do before today

1) Close out my position in BAC opened yesterday for a 12% profit, or

2) Write some covered call, expiring Oct 18 with a strike price $35/share with an option contract at $2.24, to see if I can book a larger profit if a bailout happens, while reducing some of the potential fallout if another bailout isn’t gonna happen.

Selling a $35/share covered call with expiration in 3 weeks, I can pocket $2.25, so if the bailout does propel BAC, I’ll book a $5 profit + the $2.25 option price.

In the event the bailout doesn’t happen, BAC tanks the covered call expires worthless, so I’ll get to keep the the $2.25/share, plus whatever price BAC fetches, which means my cost basis would end put being around $27.85 before i lose money….

Hmmmm decisions, decisions. Thoughts? Yeah it’s gambling. So what….
[/quote]

Never mind. In at $30.25, out at $38 today. That was fun….Next up, GE… If warren buffet is investing $3billion in it, can’t be a dumb move, right? 🙂

[Coronita]

[quote=fat_lazy_union_worker]I’m debating what I should do before today

1) Close out my position in BAC opened yesterday for a 12% profit, or

2) Write some covered call, expiring Oct 18 with a strike price $35/share with an option contract at $2.24, to see if I can book a larger profit if a bailout happens, while reducing some of the potential fallout if another bailout isn’t gonna happen.

Selling a $35/share covered call with expiration in 3 weeks, I can pocket $2.25, so if the bailout does propel BAC, I’ll book a $5 profit + the $2.25 option price.

In the event the bailout doesn’t happen, BAC tanks the covered call expires worthless, so I’ll get to keep the the $2.25/share, plus whatever price BAC fetches, which means my cost basis would end put being around $27.85 before i lose money….

Hmmmm decisions, decisions. Thoughts? Yeah it’s gambling. So what….
[/quote]

Never mind. In at $30.25, out at $38 today. That was fun….Next up, GE… If warren buffet is investing $3billion in it, can’t be a dumb move, right? 🙂

[Coronita]

[quote=fat_lazy_union_worker]I’m debating what I should do before today

1) Close out my position in BAC opened yesterday for a 12% profit, or

2) Write some covered call, expiring Oct 18 with a strike price $35/share with an option contract at $2.24, to see if I can book a larger profit if a bailout happens, while reducing some of the potential fallout if another bailout isn’t gonna happen.

Selling a $35/share covered call with expiration in 3 weeks, I can pocket $2.25, so if the bailout does propel BAC, I’ll book a $5 profit + the $2.25 option price.

In the event the bailout doesn’t happen, BAC tanks the covered call expires worthless, so I’ll get to keep the the $2.25/share, plus whatever price BAC fetches, which means my cost basis would end put being around $27.85 before i lose money….

Hmmmm decisions, decisions. Thoughts? Yeah it’s gambling. So what….
[/quote]

Never mind. In at $30.25, out at $38 today. That was fun….Next up, GE… If warren buffet is investing $3billion in it, can’t be a dumb move, right? 🙂

[Coronita]

[quote=fat_lazy_union_worker]I’m debating what I should do before today

1) Close out my position in BAC opened yesterday for a 12% profit, or

2) Write some covered call, expiring Oct 18 with a strike price $35/share with an option contract at $2.24, to see if I can book a larger profit if a bailout happens, while reducing some of the potential fallout if another bailout isn’t gonna happen.

Selling a $35/share covered call with expiration in 3 weeks, I can pocket $2.25, so if the bailout does propel BAC, I’ll book a $5 profit + the $2.25 option price.

In the event the bailout doesn’t happen, BAC tanks the covered call expires worthless, so I’ll get to keep the the $2.25/share, plus whatever price BAC fetches, which means my cost basis would end put being around $27.85 before i lose money….

Hmmmm decisions, decisions. Thoughts? Yeah it’s gambling. So what….
[/quote]

Never mind. In at $30.25, out at $38 today. That was fun….Next up, GE… If warren buffet is investing $3billion in it, can’t be a dumb move, right? 🙂

[La Jolla Renter]

Congress could just as easily pass a plan that Wall Street does not like. Toss in a bit a lousy news, retail sales, bank default, etc. and the market could tank.

50/50 chance long or short.

[La Jolla Renter]

Congress could just as easily pass a plan that Wall Street does not like. Toss in a bit a lousy news, retail sales, bank default, etc. and the market could tank.

50/50 chance long or short.

[La Jolla Renter]

Congress could just as easily pass a plan that Wall Street does not like. Toss in a bit a lousy news, retail sales, bank default, etc. and the market could tank.

50/50 chance long or short.

[La Jolla Renter]

Congress could just as easily pass a plan that Wall Street does not like. Toss in a bit a lousy news, retail sales, bank default, etc. and the market could tank.

50/50 chance long or short.

[Author]

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