I made note of that yesterday also. It's unusual for GOOG to be on the weak end of the spectrum. Aaron Schindler Schindler Trading
True...the chart does look like it was ready to kill some more shorts around 415...but I have been playing/testing with a strategy that told me I should have got short at the open on Apr 11...last time it triggered a short signal for GOOG was on Jan 11/06...So fingers crossed Like your outlook alot though!!!!!!!!
I meant: why not just sell the call? -------------------------------------------------------------------------------- Quote from JORGE: I don't think haji cares much about risk. This thing could move 20% in a day on any legal news. Go look at the May premiums to get an idea of how much people think RMBS could move. -------------------------------------------------------------------------------- Quote from cnms2: What do you mean: "short RMBS, sell PUT 40 right away to protect yourself"? to cnm2: Your wisodm caught my mistake or at least my un-clarity. Let me re-phrase my words. I meant you can short RMBS and then try to cover it with profit and if it goes against you, you can sell PUT 40 to reduce the damage. then while you have are short and have sold uncovered PUT, you can cover your stocks and short again but you should be careful not to be covered when the market is closed because it might open at $30 and you will be sold the shares at $40 (a bag holder) . I don't recommend shorting RMBS in big volumes. I did only 200 shares while I trade INTC at 5000 share lot.
I would like to take everyone's attention to something that might be misleading. Actually I was mislead by it a couple of times and it is hard to settle it in one's mind. When GOOG drops $10, it is not a big deal . It is a $400 stock and it drops to $390. It is like a $40 stock drops to $39. Have you not seen such a phenomenon? If GOOG drops from $400 to $360, it is like a $40 stock drops to $36. I believe tomorrow (Friday) GOOG will have another down day. From 3 weeks ago, I have predicted $368 for option expiry day.
From a technical standpoint, it was a good idea. It was right at a .618 fib retracement and was very overbought. It could not move too much higher plus it was meeting resistance. A good short IMO (soley from a chart perspective) which is why i took it at 512
It certainly continues to work like a charm. GOOG/RMBS shorts = stock runs up. INTC long = stock falls. I gotta hand it to ya, can't be any more perfect than that.
He recommneded GOOG short on the day that they issued their additional shares, when GOOG was trading at 385-390 "03-30-06 06:53 AM Good plays for the Day and they are also good trades for 2 week time frame. Short or sell GOOG. Buy INTC " RMBS short was recommended around 42 I believe.