HI Barry: My data showes the stock will gapdown in the morning
about 1/2 : think I mentioned before short selling is mostly
done by "day traders" shorting and holding a short is very risky,
if you will;; look at the last week with the price drop, ok so you
made money..but had you taken the same amout of money you were
at risk for, and put it in puts you would have cleaned up, as
I don't know any puts that have not more that doubled in price,
in the last week, if I were to short sell I would want to have
some in the money calls to cover my rear, even then I would
be an in/out day trader, I'v watched them all last week..and
they did good..BUT it stoped today..there were no up bounces
big enough todoy to short..they bailed out..and I doubt they
be coming back..she is still going to slide, ( but you could
get sqezzed real hard one day as the big boys watch just how
many shares are out on loan, and can reverse the price just to
sqeezz the shorts, or call in their margins, I think you did
right in covering your shorts..she will still slide down but I
sure would not take the risk of a quick reversal ( I'v saw
them bumb a stock up the other day $ 20 for just 5 min, and
"it caught all the shorts in cscc" it went right up and then right
down..just long enoung to forse them to cover it's real risky
game, at least with puts you know what your at risk for..
I went into april puts today, looking for a home run, she could
go belly up..but I would still be afraid of selling her short,
at least with out calls to cover..I thought when I hedged my self
in I might try some day trading ( shorting on the peaks..but that
ended today very early..she leveled off..then just droped late
in the day as the day traders who still had some shares dumped
them..agine the way she closed looked like 34-1/4 but that was
the result of last min adjustment made by MMs, she really paid the
last seller of the day 33-3/4...and will likley gapdown in the morn,
or have you been noticing that gapdown ? I'v seen it at least 3
times last week..I still think april puts are a good deal.
JIM |
