Greed and JDSU.... With JDSU's run and the possibility it may run significantly more, I suspect that a few folks on here are already seeing dollar signs. I do. But, it is important to keep it in perspective.
Just want to give my thoughts on a couple of things going through my mind, if anyone is interested.
I have a large Sept JDSU calls position. I have reported it on here before. Sitting on good profit in them. When should I sell? I've written on this before in response to questions. I have to be careful because I get greedy, very greedy. I always enter an options position with a vengeance and to get all I can out of it. I also know that I can't time it perfectly. Consequently, I have to pop myself in the jaw and snap out of it.
When I run up profits, it is difficult to decide when to sell. Sept expiration is still 60 days away, but experience has taught me the hard way to start getting out of positions that are close in. My style would have me start to close those Sept's out. In fact, I told the Porch when I was closing some out several weeks ago and rotated to the XXZLR's in Dec. More time....
Now I am looking at huge news, the potential for a huge runup and some are saying JDSU will hit 170 and announce a stock split next week. Whew.... wow. So, when do I sell? Very tough question. This is when I have to give myself a lecture about greed, specifically, don't get too greedy. My experience has been that when you have a runup, take some off the table. If it is that good of a position with options, you will have another opportunity to re-enter. I do that all the time actually as ya'll know I'll churn my options positions constantly.
Anyway, I will watch closely how JDSU reacts tomorrow and early next week. There may actually be a pullback in here. Maybe not. If I can get another 10-15 dollars out of JDSU, I'll start closing some Sept calls. I won't be greedy. I'll take my profit and smile all the way to the bank. Granted, it may keep going and going. Super, hope it does, especially if it blows out numbers next week. And the S/P news may give it a continued boost as well.
But, the market can turn on a dime. Earnings season will be closing in 10 days or so. What will hold the market up then? I don't mean that in a bad way, just that it is a consideration to ponder when you have profits sitting on the table. Don't get greedy.
Heck, JDSU may gap up tomorrow. I'll ride it awhile, but I am not going to hold those Sept calls much longer. I'll be selling into strength and doing so in small lots. I'll take the run as much as I can.
Just wanted to pass my views along. I won't be around next week at all and wanted to pass some thoughts along. I know a lot of folks on the Porch are holding JDSU and some in option positions. Remember, options are unforgiving. Careful. Don't be afraid to take some profits over and over and over again until stinking wealthy!
Enjoying Conn's cooler weather. Sittin' up here in a hotel in Hartford, counting my money but not getting greedy. Thankful for everything.
Good luck. Let's keep them bulls going.
RR |
