Hi ! I haven't yet looked thru much of your journal, but I found it interesting that you were negative on IPG yet made $$ on rise in its price. If your short was for an equal size as your hedge call buy there's no way that could be, so what's up? ================================= Quote from romik: SHORT - IPG (NYSE) Interpublic Grp of Cos Hedge: Buy 75 Oct $10.00 Calls @ 0.25 Current: $9.83 Average down: ~$10.17 PT1: $9.10 PT2: $8.00 PT3: N/A Stop: ~$10.30 BRD in HIST on a daily chart attached, but daily chart is in an uptrend with a possible double bottom in the mid $7 range. Possible reward outweighs risk here. I would say that this could be a risky trade when looking on the daily chart. http://finance.yahoo.com/q?s=IPG -------------------------------------------------------------------------------- Position covered $10.32 -3.2% adjusted after averaging @ $10.17 Oct 10 calls remain open. -------------------------------------------------------------------------------- 75 Oct 2006 10 calls sold @ $0.50 for 100% profit. Due to this outcome the overall position's PnL has been adjusted to: +0.53%
Hi ! I haven't yet looked thru much of your journal, but I found it interesting that you were negative on IPG yet made $$ on rise in its price. If your short was for an equal size as your hedge call buy there's no way that could be, so what's up? ================================= Quote from romik: SHORT - IPG (NYSE) Interpublic Grp of Cos Hedge: Buy 75 Oct $10.00 Calls @ 0.25 Current: $9.83 Average down: ~$10.17 PT1: $9.10 PT2: $8.00 PT3: N/A Stop: ~$10.30 BRD in HIST on a daily chart attached, but daily chart is in an uptrend with a possible double bottom in the mid $7 range. Possible reward outweighs risk here. I would say that this could be a risky trade when looking on the daily chart. http://finance.yahoo.com/q?s=IPG -------------------------------------------------------------------------------- Position covered $10.32 -3.2% adjusted after averaging @ $10.17 Oct 10 calls remain open. -------------------------------------------------------------------------------- 75 Oct 2006 10 calls sold @ $0.50 for 100% profit. Due to this outcome the overall position's PnL has been adjusted to: +0.53%
50k allocation per position, -3.2% on 50k and +100% on 75 calls. What I can say here is that my decision to allocate so many or so few options as hedge vs a 50k position is a mystery to me as to others. If anybody has any advice on ratios I am all ears.
Some charts I'm watching <img src="http://stockcharts.com/c-sc/sc?s=CHTR&p=60&b=3&g=0&i=p58772468903&a=88014002&r=8535"> <img src="http://stockcharts.com/c-sc/sc?s=RHAT&p=60&b=3&g=1&i=p68494546253&a=88013741&r=4819"> <img src="http://stockcharts.com/c-sc/sc?s=NT&p=D&b=3&g=0&i=p93072392021&a=87285472&r=4149">
Motherf.....! That's just one big problem with stocks - gaps on earnings and since that position was not covered by a call hedge it is pretty screwed at the moment. Obviously, all future positions are protected, this one wasn't. Good job these are paper trades. Up 14% on open.
Romik, Today I closed my position on the Q's. I am now neutral. I closed at 42.25 giving me a realized profit of about 130% or 13K. Gary
Nope, they expired worthless last month. That is part of the reason I sold my calls today. I think today could have been a turning point and if that is the case I'll be going short.