http://www.callwriter.com/blog/2007/10/31/witch-hats-bad-on-halloween-and-every-other-day/ Thu, 09 Sep 2010 08:47:44 +0000 http://wordpress.org/?v=2.1 http://www.callwriter.com/blog/2007/10/31/witch-hats-bad-on-halloween-and-every-other-day/#comment-149 Mark Wed, 31 Oct 2007 22:58:24 +0000 http://www.callwriter.com/blog/2007/10/31/witch-hats-bad-on-halloween-and-every-other-day/#comment-149 The dip happened, but it quickly recovered. When I bought some puts, the stock had already started recovery, however, I would like to keep those puts for a while as I see a lot of clouds on the horizon. 1) Bonds didn't recover today. 2) US$ is getting cheaper against Euro. and 3) The oil spiked $4. The dip happened, but it quickly recovered. When I bought some puts, the stock had already started recovery, however, I would like to keep those puts for a while as I see a lot of clouds on the horizon. 1) Bonds didn’t recover today. 2) US$ is getting cheaper against Euro. and 3) The oil spiked $4.

]]> http://www.callwriter.com/blog/2007/10/31/witch-hats-bad-on-halloween-and-every-other-day/#comment-150 John Brasher Thu, 01 Nov 2007 01:51:10 +0000 http://www.callwriter.com/blog/2007/10/31/witch-hats-bad-on-halloween-and-every-other-day/#comment-150 Anyone already in the MSFT covered call before the report could have closed after the earnings runup with a great profit, because the option premiums collapsed, even though the stock rose hard. Rolling up would have made no sense, because premium absolutely died. Reacting to these moves and trying to call the direction is tough for a retail trader. Anyone jumping in at the $35/36 level, though, was taking a real chance. MSFT could stick where it is, who knows? But that is the point - we don't know, and playing bull or bear on MSFT now is just a guess. But like you, I would be loath to close the long put at a loss if you have some reaction time. Anyone already in the MSFT covered call before the report could have closed after the earnings runup with a great profit, because the option premiums collapsed, even though the stock rose hard. Rolling up would have made no sense, because premium absolutely died. Reacting to these moves and trying to call the direction is tough for a retail trader. Anyone jumping in at the $35/36 level, though, was taking a real chance. MSFT could stick where it is, who knows? But that is the point - we don’t know, and playing bull or bear on MSFT now is just a guess. But like you, I would be loath to close the long put at a loss if you have some reaction time.

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