Tuesday, August 24, 2010

Trade: NFLX Long Calls...Loser

Update Looser trade and it was a big one sold for $8 for a loss of $1040. I didn't follow the signal that was saying to exit yesterday and this cost me about $600.

Stupid stupid. Bad Bad. In any case, while I almost made up for it with GOOG, this is unacceptable and I simply should not have traded this given the system was giving only daily signal and the hourly was very range bound.

Lesson learned and this is the first time in a long time that I didn't have the discipline to cut a loss properly.

I was looking at NFLX on Thursday as it had retested on Wednesday and rebounded nicely on Thursday.

Then Friday Headley came across with an alert not to trade but some picks for the coming week (they included long BIDU and Short RIMM). Anyway that gave me the confidence to pull the trigger (silly as that sounds).

Picked up a couple of Sep $120 Calls for $13.20 each (2 contracts). Only in the taxable account. I had chased this a little bit but that's OK. Price's target is $140 on NFLX.

I am thinking that I should have picked these up across all the accounts but I didn't...oh well.

Anyway let's hope for the best here.




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