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Non-Tech : The Critical Investing Workshop
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To: Voltaire who wrote (12556)4/12/2000 11:58:00 PM
From: Dr. David Gleitman  Read Replies (3) of 35685
 
Good evening V:

Time to do a post mortum.

I followed your advice and sold CC ATM (or just slightly above it) for April last month right after March options expiration. Got a nicr premium on RMBS, BRCM, CREE, and ELON. Sold some way out of the money calls on JNPR (April 380's seems so far away right now).

Problem #1 (jump in and critique me, that's what I'm here for). I figured that it was after the first quarter, and the MM did their window dressings. There was no bad news on the horizon (that I could tell). I pressed my margin to the limit buy buying RMBS (at 336, then 340, then 360, total 1000 shares and sold the calls while margining myself up the wazoo (yes, I am familiar with that surgical proceedure). I placed myself in a precarious position by using the premium to push the envelope beyond toerances taking a bet that the markets will go higher and that the expected market upswing (boy was I wrong- Mea Culpa!) will give me a some breathing space.

When the market downturned I bought back a number of my calls and started trading these calls with the flow of the market (which in hindsight, I guess I should have left alone). Seems that I burned myself in the process.

Any critiques/advice.

Regards,

David
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