You're right Tuck in many ways.
However, there is a major difference between SHORTING a stock with very limited float and writing covered calls for 4 days. I knew the stock would finish right near 35 or 40. I felt I had almost no risk and took a quick 1 3/4.
To tell you the truth, I was sweating that I'd get called away and had a strategy in place to immediately right twice as many puts so I'd have a decent position no matter what. In fact, I may be writing some puts next week if the stock moves lower.
I realize people have different objectives just as I realize that this stock may be down tomorrow or the next day.
I guess what gets me is people who are right for one day or two out of 10 or 15 and then have to blow about it, often denigrating others. Further, the people who are in long or short and have to post get me particularly after the stock has moved nicely up or down from their imaginary trade.
All in all - this board is much better than a Yahoo board and I hope we can keep it that way.
As far as shorting goes, I don't think it's necessarily bad but for this particular stock with the world's third richest man owning half that company, with an extremely low public float, my opinion is that one has to be nearly perfect on both entry and withdrawal (hey it's Saturday night) in order to score cleanly.
I'm not perfect and when I do something, I want to leave margin for error. If MCOM is down a few points, the short day trader may win if he has timed it perfectly.
With a stock like MCOM, clearly it is just at the beginning of PR (or call it hype) and rollout, analysis, accumulation, etc.
No amount of charts and verbiage is going to help in this case because the short has to be perfect on his entry and exit.
For me, being long is almost a no lose from here. I just have to wait and I'll make more money. As I said maybe along the way I'll write some puts or calls (never naked though) if the premiums get too big.
Take care. I need a cold shower now. |
