Thursday, March 15, 2007

Mistakes 1:

For the first several minutes, market opened slight up and starts to climb, then I jumped in for 10 May QQQQ call at 1.56. This is stupid, as I already predicted the market is going to be quite as we approch the OE day. But once I saw the Q climbing, I felt I should buy some calls to compensate my Puts. And denied the fact that the market didn't have momentum to go up today, so I bot the call at the highest price, though the stock came back to 43 level but the call never came above 1.56...

Have to sell tommorrow!!
1. if market opens higher, sell,
2. if market opens flat or lower, wait for chance to sell

Mistake 2:
before the close, saw somebody mentioned usna on mitbbs, which down 15% for rumor on their health products, then jumped in bot April 50 Put at very high price 3.7. The option closed at 3.4. If the news went away, the option will drop more even if the stock keeps falling.

Don't let emotion or gambling feeling dominate you, keep calm always.

Plan: 1. if solf the Q call, prepare to buy some index puts
2. buy some double short EFT for the IRS account.(sold Q call and bot some qid for irs)

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