Friday, June 20, 2008


Today sucked. The market went down huge, and I basically had 100% of my positions in the red. I really should learn to short more, but I try not to trade too much, and I generally don't short for the longer-term. Maybe I need to rethink that at some point.

Anyway, at least the weekend is here... some peeps are coming in this weekend. There's a birthday party celebration thing for my uncle tomorrow night, so there should be some good seafood to be had.

And, all options sold expire worthless today, which is only a very minor consolation given how badly beaten up various positions have gotten since the covered calls were sold. The plan is to get rid of Wynn early next week... with some luck, I should be able to get out above my effective cost basis of 87.30. The GE position I picked up for the buy-write trade I am likely going to keep, which adds more shares to my existing GE position. Too bad for me, since GE has taken a serious pummeling over the last few months.

Glad that it's Friday. I need to chill a bit. I didn't quite get my fill of relaxation in Tahoe last weekend.

Okay, time to wrap up here at work and then head to the airport. Have a nice weekend, and if you got hurt today, then I hope that you subscribe to the 'misery loves company' school of thought.


Mark Wolfinger said...

Sorry to see that your covered call positions did so poorly this time. I note that you want to 'rethink' the possibility of taking short positions.

I have two recommendations.

First, consider iron condors.

Second, seriously think about closing positions prior to expiration. It's not a good idea to hold stocks simply to collect the last nickel or two on your short option. Buy in those options and roll them out to the next month - but only if you truly want to maintain an investment in that stock. Otherwise close the position and find another place to invest your money.

Brute Force said...

Thanks, will look into that. And, good point on closing out positions ahead of expiration instead of trying to squeeze out the last nickel or dime, if possible.