Hello James.
Even in Vegas, everyone loses if they play long enough. It has been a hell of a run at the craps table, and it may not be finished. That's why I bought the furthest out options I could get, partly on your suggestion (but I always try to do that with options). Although expensive, they leave enough time to allow the shooters to finish their game. Shorting can kill you because the margin department will eventually call you if it gets high enough. My options money is spent, I can only lose that, and it is money I can lose (not happily though). I might get heartburn watching it rise, but I know I have paid for some time, and I kept a little in reserve so I can buy more options if need be.
That being said, AMZN has been, and probably will continue to be, an AMaZiNg stock to watch. I can't think of any other stock that has consistently defied all logic and continue to rise to this degree. My hat is off to the longs, you have played it well so far. I've been too chicken until now, but Yahoo is going to show a loss, and I think the internet high-fliers will crack between now and December.
Don't get me wrong, I've used Amazon myself a couple of times, and I like the service. It's a good product. I just don't see how it can sustain its upward momentum for another six months, after more than a year of stratoshperic heights. We'll see if I'm wrong, though.
Have a good weekend.
Peter |
