Comments on: Closed all FNM Contracts http://mytradersjournal.com/stock-options/2008/03/20/closed-all-fnm-contracts/ Investing in Stocks Through Options Sun, 12 Oct 2008 03:45:16 +0000 http://wordpress.org/?v=2.6 By: Options Strategery http://mytradersjournal.com/stock-options/2008/03/20/closed-all-fnm-contracts/#comment-2708 Options Strategery Fri, 21 Mar 2008 03:01:34 +0000 http://mytradersjournal.com/stock-options/2008/03/20/closed-all-fnm-contracts/#comment-2708 I am waiting for WM to get a Bear style take-under. The Fed will save them but given the rumor about lower BSC offer to reduce moral hazard, the WM common will get hosed if the need Fed help. I am waiting for WM to get a Bear style take-under. The Fed will save them but given the rumor about lower BSC offer to reduce moral hazard, the WM common will get hosed if the need Fed help.

]]> By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2008/03/20/closed-all-fnm-contracts/#comment-2702 Alex Fotopoulos Fri, 21 Mar 2008 00:13:09 +0000 http://mytradersjournal.com/stock-options/2008/03/20/closed-all-fnm-contracts/#comment-2702 I did get out of FNM a little early. It went lower than where it was when I exited, but I had been walking that line long enough for me. I actually think it'll dip again, but I opted not to accept the risk of it just continuing to climb. I wish I had bought 400 shares in the first 2 hours of the day and I'd have saved $2k, assuming it didn't tank before April expiration and I lost on those shares and the four puts I had. A mistake I made was starting off with 4 calls and not legging into it slower. WM could be in the same boat.  If the Fed has their back, they might have limited downside and will climb until the downside is more equal to the upside potential.  Had I been thinking I would have taken a $2-300 loss as soon as the Fed stepped up over the weekend with the backing of Bear Sterns financing and definitely should've jumped ship by Tuesday aftn.  I sat around waiting and hoping instead of facing reality. At least I finished up for the day overall. I did get out of FNM a little early. It went lower than where it was when I exited, but I had been walking that line long enough for me. I actually think it’ll dip again, but I opted not to accept the risk of it just continuing to climb. I wish I had bought 400 shares in the first 2 hours of the day and I’d have saved $2k, assuming it didn’t tank before April expiration and I lost on those shares and the four puts I had. A mistake I made was starting off with 4 calls and not legging into it slower.

WM could be in the same boat.  If the Fed has their back, they might have limited downside and will climb until the downside is more equal to the upside potential.  Had I been thinking I would have taken a $2-300 loss as soon as the Fed stepped up over the weekend with the backing of Bear Sterns financing and definitely should’ve jumped ship by Tuesday aftn.  I sat around waiting and hoping instead of facing reality.

At least I finished up for the day overall.

]]> By: Options Strategery http://mytradersjournal.com/stock-options/2008/03/20/closed-all-fnm-contracts/#comment-2697 Options Strategery Thu, 20 Mar 2008 21:24:10 +0000 http://mytradersjournal.com/stock-options/2008/03/20/closed-all-fnm-contracts/#comment-2697 I am getting killed on my hedges too. I am wondering if there was short covering ahead of the long weekend. If I were short (and I am on WM), I would be worried about 'upside news risk' over the weekend. Plus, everyone is just cheery after avoiding major disaster and enjoying Easter weekend. I am wondering if you pulled the FNM too quick. Then again, I have a bunch of WB 30 calls that I am naked on that are taking in big losses. Ah, the joys of expiration. I am getting killed on my hedges too. I am wondering if there was short covering ahead of the long weekend. If I were short (and I am on WM), I would be worried about ‘upside news risk’ over the weekend. Plus, everyone is just cheery after avoiding major disaster and enjoying Easter weekend. I am wondering if you pulled the FNM too quick. Then again, I have a bunch of WB 30 calls that I am naked on that are taking in big losses. Ah, the joys of expiration.

]]> By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2008/03/20/closed-all-fnm-contracts/#comment-2692 Alex Fotopoulos Thu, 20 Mar 2008 19:49:08 +0000 http://mytradersjournal.com/stock-options/2008/03/20/closed-all-fnm-contracts/#comment-2692 I closed out my MO naked put at 3:30 for $4.80 and took a loss of around $200 I think. I opted not to take the assignment on MO as I regroup and start over somewhat from my recent downfall. I closed out my MO naked put at 3:30 for $4.80 and took a loss of around $200 I think. I opted not to take the assignment on MO as I regroup and start over somewhat from my recent downfall.

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