I am actually stuck with the below position. Last Monday when I looked at the futures up over 200 points early in the morning, I quickly analyzed all potential trades for that day and was deciding to trade between CME and C - since C is the cheapest component of the DOW JONES IND AVG, I decided to trade C and got into a very emotionally charged trade at about two minutes after the market open. I really believed that this was day the C was going to fly high with the DOW.
What I failed to realize -
The DOW was up two minutes after the open; not C - and there was no C related news to make the stock push forward. The stock open was 3.31USD and only pushed four more cents from the opening and down from there - I basically fell asleep here and now I find myself with these 46 CALLS with a .04 bid today, 03-25-09.
Filled Buy to Open 46 +CDP Limit 0.17 09:31:57 03/23/09
What to do -
I do not want to get more emotional / desperate now and drop the entire position taking a more than 50% loss; however, there is nothing that can potentially push C to the next level for a little while as the details for the bank bailout came out and the stock has gone down after that. One thing that is in my favor is that C reports earnings on 04-17-09, but would you wait until then when these calls also expire and the stock may never make it to the strike price? I do not think so...
Enjoy trading!
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