Etrade has taken a pretty nice slide from
$4.55 to yesterday's close of $3.40. I've increased my position to 4000 shares and keeping my fingers crossed for earnings report Thursday around 4:15pm. Even if earnings miss, the stock will recover - I'm not worried at all. Good time for all you guys to jump in.
Happy trading!
3 comments:
Looks like it was the right time to buy. You've got it bouncing at the bottom of your channel with a long lower wick - indicating buying strength. Holding over earnings scares me because the stock becomes so unpredictable. Maybe you should consider buying a couple cheap put options as insurance? Also, with 4,000 shares have you given any more thought to your C.Calls? You could sell 40 contracts!
Well the thing is....I will be looking to sell this lot of 4000 once the share price is around 4.10 which may be friday, or two months from now. Correct me if I am wrong, but if I have outstanding CCs, I need to hold my stock until they expire. Etrade is so volatile right now that I don't want to be locked into holding if it jumps.
True story -- you have to hold the shares until your C.Calls expire. You can buy back your calls -- but that would certainly not be profitable. Executing C.Calls would be a change of strategy... you would essentially be "renting" out your stock instead of "flipping it" (to use a housing analogy.)
Post a Comment