<<I had the 60 calls on this and panicked selling them when the stock dipped into the 50's and 40's-----those $1300 calls now go for 4000 plus. Talk about feeling bad !!!>>
Don't get down on yourself over something like that: just get back on the horse and ride it a little longer next time. I was out $8,000 (still made $1,500) last month because I had several RCQ calls long for May expiry at 75, 77.5 and 90. The stock closed that Friday at 107; it is burned into my brain! Sold way too early, but instead I picked up some June 100's and sold a 105 put (so far the right moves). Although, I just sold the 100's since I now believe we are in for a bit of profit taking. I'll probably head into earnings buying calls and selling more puts and just accumulating more BRCM.
Being completely open, not all my options trades work out; no surprises there to anyone who has traded options heavily. I've been pretty lucky lately. Back in January I took an $8,000 loss on a naked call on YHOO. But I did get out before the position ran to $40,000. Talk about feeling like a piece of dirt. Sh*t happens. If you can't enjoy the risk, then don't do it.
As far as I see it, the best thing to do with BRCM options is trade'em like there is no tomorrow. The premiums are like free money if you bet the right way. Just don't hesitate to take your profit and then reinvest it and grab a little more time.
Happy trading, Keith
P.S. Don't worry about BRCM's technical ability. They will beat out Intel and everyone else who comes their way. These guys know how to please Wall Street and their customers: keep expectations low and then blow them away. Kind of like what Microsoft does...only these guys actually have some competition. |
