This one was just horrible. It was up over 30% I should have sold before earning, I do not know what I was thinking…probably the worst mistake I have made. I knew Apple’s products were and are going to continue stealing smart phone share from them. In a market like this just meeting estimates will likely cause your share price to tank, but missing them has proven disastrous. What was once a big gainer has now turned into a pretty hefty lose. I ready to cut my losses and move on from this on….especially in this market…sad
This was just bad timing. I bought into this thing right when oil and the markets were rallying. I was impatient and paid for it. This stock has been tanking since my purchase. With so much uncertainty out there concerning soverign debt I am trying to free up a little capital to try and pick at the bottom here. I think the market is in for a slight correction here and quite frankly it makes sense. Perhaps I will be buying WFTSF much lower. If the stock hits $1.25 I will pick up some more shares again. When I bought this company I noted that my major concern was how quickly this company can turn sales into actual revenues. There latest quarterly results provided a new concern. It seems as though they had to replace several systems costing the company over $200K. This is not a good sign in my opinion. With the markets getting crushed, and more specifically oil getting spanked and foregin credit concerns, the dollar should continue to rally as a safe haven for investors. This will also hurt WFTSF, especially since they report in Canadian dollars. This one hurt and I am not happy on my timing here. Oh well live and learn. I am going to hold onto Sonic for a while. I feel dirty about this sale….hopefully it was for the best.
Man…This really turned out to be a bad trade for me. The reasoning was there, the profits were there, the trade was there….but the timing was not. This just turned out terrible for me and it really shows the leverage that you get using options. I bought these options for $1.29, at the end of the day they were worth $1.77 for a 37% gain in less than 5 hours. Sounds good huh? I decided to leave them on considering the run that the market has had of late….what was I thinking…of course this market doesn’t go down!?
So long story short, this thing just tanked…I am lucky I sold when I did because they finished today worth $.84. I might look to put this trade back on if the market continues up tomorrow. I will possibly use the 116 puts this time. They are currently sitting with a bid of $1.13. I remain cautious of this market yet despite all that is going on in the world it seems to continue to drift higher on low volume.
This one was just terrible…end of story…maybe in a different tape this one could have worked out but this market was not having any of it. Just look at AMZN dropping like a fly a day after crushing earnings. AAPL just bled me….I might touch this one again under $180
I am a little angry with myself here. It looks like I had some really prime timing on this one (of course luck had nothing to do with it!). MTN has really taken a beating today following their earnings report as I thought they would. The stock was down over 10% at one point this mornings. I will continue to monitor this one. A short at the market open would have been spicy! But unfortunately I didn’t have the huevos. The options as predicted are barely even paying off due to the lack of volatility and liquidity. There still remains a pretty large spread and good luck getting filled at the ask. At $37, this bearish view does not look as tempting but I still think this thing could fall below $35. I really wish the options were more widely traded as I think that would be a great way to play this and get some downside protection from the market as MTN tends to move in positive correlation with the market…
Another blown chance!!
What seems to be a costly lesson, it is imperative that you always stick to your strategy. With the market currently in a sell off for the past week or so, I am finding myself regrettably in between a rock and a hard place. Coming into the month of October and even before that the equities markets have been on a roar. Historically October has had its problems for several reasons (one theory being that most hedge funds/mutual funds end their fiscal year in October thus book gains to report to their clients). I along with what seems like everybody believed that the markets would see a healthy pullback. Knowing this, I came into the month with roughly 50% cash which is where I wanted to be. The first few weeks of October showed no signs of slowing as stocks; particularly gold and gold related stocks along with oil and other commodities pushed to 52 week highs. What happened next was a testament to what happens when you get caught running with bulls and not sticking with your gut. I compulsively bought a few junior mining companies (which I think have great long term potential given their production capabilities and the long term fundamentals surrounding gold). While I am not against owning junior miners, I bought them when the market was arguably 20% overvalued and I knew a pullback would be coming. Dumbfounded, I found myself in the middle of a market pullback holding a portfolio that is concentrated and risky! Since then I have dramatically trimmed my portfolio back selling out some of my holdings but at a healthy cost! Patience is truly a virtue and it is important to not get caught chasing profits. I had the extreme luck of entering into the market at incredible lows and was fortunate enough to only experience the upside of things. I have had a great year but now is the true test. While I was able to drastically outperform the market over the past year, it was because I was willing to take on much more risk in picking my investments. Now, that risk will come back to haunt me as for the month of October I am drastically underperforming the market.
Let this be a lesson for future trading…..Never stray from your strategies and don’t get caught running with the bulls when the bears come back to bite!
