Taking Profits. BOT the next BIDU?
Where do I Begin? It has been a few days since my last post, but I am pretty pumped to have Mark on board. As the blog continues to run, new ideas continue to come in and I am sure some will come to light down the line. We are establishing a team, the Falkin team, which we hope can gain some respect here down the line, haha. The trading contest is a great place to find and help people learn more about the market, and I love every minute of it. It seems that there is an increasing number of contestants climbing into the gains category overall. By my count there are now 22, and there are a lot that are right on the brim.
Getting my contest simulator portfolio updated, I have made only a couple moves since last week. I covered both my big shorts on ARD and NGAS, between the two yielding $5098.98 and $114.28 respectively. I lost $1,458.98 on my WRES put options. Always remember to take into account how much time is left before the option expires. I made the mistake of buying the options with only a week left until expiration. Most contracts go by the month, and will expire after the third Friday of the month. My other two put option plays were bought out till November, so I am still good on those for a while. So, overall, after these three closures I pushed my simulator portfolio up $3,754.28, or about 3.5%.
Stepping into the next play, I took a short break to rethink and find new plays that may be available. Yesterday, I went ahead with my next play, which was to short BOT, the Chicago Board of Trade Holdings Inc. The holding company went public just last week, and has run up every day to a new high close yesterday of $130.50. I shorted 800 shares at $131.26, and today shorted another 800 as the stock fell at $124.40 (the stock closed today at $124.99). The thinking behind this play is simple, as I believe this will be another BIDU. You may recall BIDU, which out of the shoot ran up to over $150 a share (IPO was $27) to fall all the way back down to the low $70s in just a few weeks. As always time tells the story; so far so good.
Stepping away from the simulator and into my live trading account, I still am holding 2,000 shares of NXXI. Just to recap, I bought and just about doubled my money on the company as FDA results for its leading drug came out good and the stock ran up from my purchase price of $.68 to a high in the $1.30s ( I sold out half my position at $.94 and $1.32, and bought a small but nice stake of 2,000 at $1.01; the stock closed today at $.92). I haven’t taken advantage of using the margin in the account I just obtained approval to manage in, as I still feel I am learning the ropes (my APEX account does not have margin approval).
Overall I am content, and I still am continuing to plow as much information in my head as I can. I bought a new book last week by Will O’Neil, “How to Make Money Selling Stocks Short” and it is full of new knowledge. An excellent read so far, and I am surprised at just how packed it is with charts upon charts with live past examples of where to properly sell a stock short. I am going to have to head on over to Starbucks, settle down with a drink, and really get into it. I hope it can help make my writing better and my calls more accurate. That is all for now as it is time to cook myself some dinner. Hope everyone is having a great week.
Closing Thought - "You are only as good as your word. Don't give your word if you aren't going to give yourself."
Regards,
Getting my contest simulator portfolio updated, I have made only a couple moves since last week. I covered both my big shorts on ARD and NGAS, between the two yielding $5098.98 and $114.28 respectively. I lost $1,458.98 on my WRES put options. Always remember to take into account how much time is left before the option expires. I made the mistake of buying the options with only a week left until expiration. Most contracts go by the month, and will expire after the third Friday of the month. My other two put option plays were bought out till November, so I am still good on those for a while. So, overall, after these three closures I pushed my simulator portfolio up $3,754.28, or about 3.5%.
Stepping into the next play, I took a short break to rethink and find new plays that may be available. Yesterday, I went ahead with my next play, which was to short BOT, the Chicago Board of Trade Holdings Inc. The holding company went public just last week, and has run up every day to a new high close yesterday of $130.50. I shorted 800 shares at $131.26, and today shorted another 800 as the stock fell at $124.40 (the stock closed today at $124.99). The thinking behind this play is simple, as I believe this will be another BIDU. You may recall BIDU, which out of the shoot ran up to over $150 a share (IPO was $27) to fall all the way back down to the low $70s in just a few weeks. As always time tells the story; so far so good.
Stepping away from the simulator and into my live trading account, I still am holding 2,000 shares of NXXI. Just to recap, I bought and just about doubled my money on the company as FDA results for its leading drug came out good and the stock ran up from my purchase price of $.68 to a high in the $1.30s ( I sold out half my position at $.94 and $1.32, and bought a small but nice stake of 2,000 at $1.01; the stock closed today at $.92). I haven’t taken advantage of using the margin in the account I just obtained approval to manage in, as I still feel I am learning the ropes (my APEX account does not have margin approval).
Overall I am content, and I still am continuing to plow as much information in my head as I can. I bought a new book last week by Will O’Neil, “How to Make Money Selling Stocks Short” and it is full of new knowledge. An excellent read so far, and I am surprised at just how packed it is with charts upon charts with live past examples of where to properly sell a stock short. I am going to have to head on over to Starbucks, settle down with a drink, and really get into it. I hope it can help make my writing better and my calls more accurate. That is all for now as it is time to cook myself some dinner. Hope everyone is having a great week.
Closing Thought - "You are only as good as your word. Don't give your word if you aren't going to give yourself."
Regards,
posted by Blain Reinkensmeyer at
6:45 PM
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