Wednesday, August 18, 2010

UPDATE: Trade: Short FIS Sep $28 Puts - Loser

Got filled on the others at $1.50...of course it is going down now.


Another loser here. Unfortunately, my stop got taken out on the 4hr chart and I had to exit this trade. The problem was that I was unable to get my $1.50 offer and wasn't able to exit entirely from the trade in all the accounts. Currently, the taxable and my sister's IRA are still holding this issue, the other accounts I unloaded for $1.42 or $1.43.

I had purchased some of these in these accounts yesterday using a retest as an opportunity...So the Cost Basis was $1.78 on these still, not a good loss to take 36 cents per contract and I was holding quite a few.

Trade triggers were fired as the Bid hit offer was $1.50 and it didn't even come close to getting filled at that price...I was battling for bids at the $ a partial fill on my sister's account at $1.43....good for TD...bad for me...gotta get the rest filled tomorrow...probably into a shitty tape.

In fairness, this did violate %R on the 4hr chart by a penny but this violation occured outside the bands...and most other indicators were still in sell terroir...So I held thinking this wasn't a good enough reason to sell and my risk hadn't been even close to being reached.




Despite being at some level of support, I feel that somethings have technical damage sufficient enough to trade to the downside. This is true in all markets...there are stocks that are rallying today (e.g. BVF). There are also of course things that deteriorate.

FIS seems to be one of those stocks at this point in time. I am much more apt to trade these higher volume names now with respect to trading options. In this case the September $28 puts are attractive from both a delta, price and liquidity perspective.

Cost basis is $1.80.



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