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Unfortunately my first time in amzn and I foolishly bought around the high in the morning ... now Im very scared...
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Jenne,
First, lots of people like you. So don't feel too bad. Here is my suggestion for you.
On Monday open, sell some (if you have 200 shares, sell 2 contracts, if you have 100 shares, sell 1 contract, etc.) AMZN April 160 call.
You should be able to get a price around $50. After that, if your AMZN shares get called away, your total proceed will be $210 per share. You make some money. However, if the AMZN price keep falling,
say to $130, buy your April 160 call back but sell April 120 call (or July 120 call). You can keep do these until your AMZN shares get called away. You will come out with a smile.
In any case, don't buy more at lower price to lower your per share cost. AMZN is overvalued at around $200, it is still overvalued at $20. You have only limited resource. It is a sure way to loss all your money if you average down.
I am amused to read your friend GST saying he/she doubled his/her position on AMZN when it fall 30 points. As far as I know, most AMZN investor are fully invested, even lot of them are using margin. AMZN is extended, they are extended more.
Bo Le |
