Ouch.........sorry to all those longs. I hope you all had a good put programs in place that was used to keep what profits you had on paper. My stop entry at 425 was slipped to 420 but that was ok since the 400 target was blow away 40 points lower. I will take gifts and not complain. My only regret was that I did not reverse at that 360 level. I never expected that action and was not prepared. A fellow traders friend of mine hit a 3 bagger on the trade. Short 40 calls at 440 for 24. Bought 2000 shares at 360 after hours blew them out at 390 premarket and than covered the short calls this morning at 1.90. That is a trade. TivTrader...you are KING this Quarter.
No one said naked...his long calls where quite high like 480. So they did not factor into the P/L . $180k on one idea is not bad. I would say his risk was $140K on a big gap up. Give or take a few schillings. No risk....no reward. sack up Mav.
I am a buyer here at 350ish as all the weak longs have been shaken from the tree. The high volume sell off has rotated scared money into the hands of value growth players. I will be long here and sell calls above to move my cost down over the next 3-4 months. I own puts below to make sure the rug does not get pulls out again from under GOOG. Trade well. TC
How many traders actually trust what analysts have to say? I've been in business since I was 18 years old, whenever you need to sell a product you need to promote it's value to a buyer. Promotion drives sales. I have never trusted stock analysts, all they are interested in is offloading their stock to ordinary people, temporarily driving the price higher until it is totally overbought. I like Google, but in my books the stock valuation is a bit of a joke. Good luck to all longs of course.
I agreed with you until you said the valuation was a 'joke'. its p/e is 66 - not shabby for a software/services company. Again: cold, hard, cash - not like the 2000 bubble. CRM has a p/e of over 200 - you want to talk about a joke.....