You have to give the man credit. He followed his PLAN! That is more than what 90% of trader's do! Maybe you can give us all a lesson on trading, or better yet, why don't you show us your account statements if you are such an expert. I give anyone credit who can successfully stick to their trading plan. Most trader's would have either A. taken profits earlier, B. Let greed take over and try to go for a home run and end up losing on the trade. My congrats to the trader of the GOOG options.
Thanks!!. I don't trade often and only after watching a stock and its price for awhile and I have been watching GOOG ever since they released earnings and I just didn't like what I saw in the price so I decided to buy those puts. And I was right that it was prime to fall and I did follow my plan. Maybe some here don't realize that the Puts I bought were 20 points OUT of the money. (450's) . So I was looking for a quick 25% if I was correct on the direction of GOOG going down. I like playing that way. Take something out of the money and look for a quick profit and get the hell out so you don't lose everything if the stock turns around. If I would have held those puts till today sure they are now worth like $6.00 but again, I stuck to my plan which you noticed and I thank you again for your congratulations!
Your "plan" had no exit strategy if GOOG moved against you. 25% on OTM options will not make up for 100% loss.
GOOG is now around $465.00 so anyone who shorted when I posted this the other day when GOOG was $481 did good, right?
You don't know if I had a exit plan or not. But with that said, if GOOG would have gone up Monday instead of down which is what I expected, then I would have sold them at a small loss. Another reasons why I bought those specific puts at $460.00. So if I was wrong, any loss would have been small. But I was right! Yee Haw!!!!!!!!!!!!!!!!!!!!!
Your loss would have been greater than the 25% profit you squeeked out of this trade. Without an exit plan your loses will be 100% and that is a lot of trades you have to make at 25% to get that back, the odds ARE against you. GOOG luck in the future with your trades.
I think GOOG dick warmer would be better. GOOG will have you on your hands and knees very quickly, get the Vaseline ready.