I just looked at the options pricing on that thing...WOW. It was around 40 a few months ago. now that the price is $5...there are puts worth $35.... Can you inagine buying puts at $1 and selling around $35? if only i had a time machine.
Woulda, coulda, shoulda.....I'm in the same boat kicking myself over the subprime lenders. About a month and a half ago, maybe more, I talked to a credit analyst friend of mine one morning about the potential for subprime to worsen - she painted an ugly picture, worse than I even thought it was. I quickly went through all of the publicly traded companies, and narrowed it down to three names to short. But after looking at the charts, it appeared it was too late - they had already fallen pretty hard. And of course, my number one pick......NEW. It has fallen at least 75% from when I first checked the charts. DOH!!!!!!
Hey guys, just found this forum and good to be here. I hear ya about NEW. I'm not a big option guy and am scared to play them but trying to feel them out...here's my idiot move that would of paid off nicely today. (paper trade at investopedia) 2/27/2007 11:21 AM 20616238 Sell_To_Close Put NEW QW 40 $4.20 $89.99 $16,710.01 $97,450.03 2/16/2007 3:13 PM 20454505 Buy_Tpen Put NEW QW 40 $2.25 $89.99 $9,089.99 $99,890.02
Can't decide if I want to scalp a few % on a bounce back or short anyone in this sector...feel like I missed the boat on the downside.
These stocks can be easily scalped intraday. However, the real profit, IMO, will be on the short-side longer-term. Fundamentally and technically, all signs point to sell.