CLOSE: Google BRCS -14%
I’m closing my Google bear call spread for Valentine’s. BIDU earnings are coming up this afternoon and Google may jump on whatever news BIDU presents. The overall market is racing up and Google has been rising over the past 5 days.
I’m closing down my trade for -2.10 debit. I originally brought in +.80 so I’ve lost -1.30 over a risk of 9.20 for an actual ROI of -14% in a week!
Of course this only adding evidence to my dislike for verticals. I entered this trade on a GTC for a morning fill. That wasn’t smart. We were sitting above support at 500. That wasn’t smart. I didn’t know that BIDU was reporting earnings this week. That wasn’t smart. I felt like the market would rally for a few days this week and didn’t take that into consideration. That wasn’t smart.
Overall, I can’t blame verticals for this. It was all my fault. Oh well, $270 down the drain. I guess I’d better tell my wife we are eating at home for Valentines!
Mojo
PS - I should have listened to Vulture Boy. When I ran this trade by him he said ‘I never do Vultures on Google, Apple, or Rimm. Too volatile.’ Very wise indeed.
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February 14th, 2008 at 7:38 pm
[…] Closed GOOG for -2.63. Subtract my initial credit of 1.07 and my loss on this is 1.56/8.93 or a -17% trade. OUCH! I talked with Mojo over at insane money who said a good friend of ours will not vulture trade google because it is very highly volital. NICE TO KNOW NOW!! :) There were some things I did really wrong about this trade that Mojo captures very will in his post on this here. […]