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Joined: 28 Dec 2005 Posts: 11966
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Posted: Fri Nov 09, 2018 2:18 pm Post subject: Next Week Trading (Nov 9th) |
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Next Week Trading (Nov 9th):
It’s rather shocking GE, which had a market cap of $600 billion in 2000, has a market cap less than $75 billion now. I was completely wrong about GE. Fortunately, the Jan calls have been volatile, although in a downtrend, which has allowed me to bail-out of weaker calls without huge losses, buy cheaper stronger calls, and make some gains on those calls. It seems, call option traders also can’t believe how GE could fall so much. It was downgraded to 6 by an analyst today and GE later disputed the low price, which created a lot of volatility. I expect more volatility. So, I may buy Jan 6 to 9 calls and sell the Jan 10 and 11 calls. Eventually, it may capitulate and bounce big quickly, e.g. two or more points, which I expect before January.
My portfolio is about $370,000 including $233,600 in cash.
Calls Contracts-Shares Long
GE Jan 9 2019 600
GE Jan 10 2019 1,800
GE Jan 11 2019 2,000
Puts Contracts-Shares Short
None
Portfolio at $100,000 on Mar 1st, 2018. Portfolio stop loss raised to $200,000. Stop loss will be strictly enforced and extreme caution will be taken if triggered to avoid large losses and preserve capital in "irrational" market periods. |
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