I purchased 52 calls of STT (strike 25.00 FEB) again on 01-21-09 since I still considered the stock to be oversold / undervalued compared to its peer group - see calls below:
Filled Buy to Open 52 +STTBU Limit 0.75 09:33:22 01/21/09
Today, STT opened red and these calls were purchased at .60 per contract - the technical signals were a little "undefined" this morning, MSFT came out with very bad earnings news and the housing report sent the futures seriously down before the opening. So, I simply got emotional, forgot about my original theory based on valuation and dropped the entire position this morning at .85 per contract as shown below:
Filled Sell to Close 52 +STTBU Limit 0.85 09:38:20 01/22/09
Well, today's high for this call was 2.20 per contract as STT reached a high of 21.95. Just wanted to share this with everyone to be used as a learning experience: Do not get emotional and stick to your theories! Luckily, this was not a loss but be careful about your emotions in this business... Enjoy trading!
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2 comments:
Why not reduce ur risk by half or sell a portion of it ?? Did you have a stop in mind??
David,
You are 100% correct! I should have sold 1/2 of my position to reduce my risk by 50% and waited a little longer in the day with the other half. A stop could have also been prudent to mitigate the risk... Good suggestions!
Thank you,
Jose
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