regarding what is a good short:
(forgive me if this gets posted twice,
I'm using IE instead of Netscape tonite and
previewing posts doesn't work for some reason).
If I "shorted" stocks instead of just dabbling in the
puts, I'd short AOL tommorrow. Now I was supposed
to be trading on paper, and, incredibly I've watched
my paper puts do nothing, even as AOL has been
falling this past week (premium is eroding just as fast
as the option should be gaining). But if you were able
to short anything, wouldn't it have to be the most
overvalued big cap popular stock you could think of?
For all I know, it is way down in after hours trading
already and will come back up later in the session
tomorrow, but that's my pick.
As it stands I got a handful of MSFT puts early today,
and maybe with all the bad press regarding the MSFT
monopoly, and maybe with a general dip in the market
these will do well. MSFT options have the attraction
of not carrying the king of premiums that aol and dell
do, because nobody is crazy enough to put msft
but I am! (yes I know, I said I'd trade on paper awhile
but I cant help but break my own rules...breaking rules
one has made for oneself is very bad...it cost me an
extra $6k on General Magic today...not selling in
one-third increments, oh well cant be too greedy, sigh).
And now some irony: Putting MSFT after it was MSFT
that pushed up GMGC today, now that is ungrateful!
Also, read pcmagazine yesterday, and no mention of
gmgc in a text-to-voice article had me despondant on
gmgc, I might have sold out today even if there had
been no run up, only to miss big gains later.
The final word; trading is crazy. |
