First trade, shot a load

The DJI was dropping from the -30 level and I figured that since BIDU was so strong today (up over 8% at the time I bought a put), it would be a good time to make a put option play. I went for short term (I’m not counting on BIDU to drop for any length of time), the Dec07 $370 put (BPJXN). The stock was at $335.39 when I made the trade, buying one measly put at $49.50 (of course the commission only being $1.00 really helps with making a profit).

While I was writing this, I noticed that I actually was the wrong way on my trade (by over a $1.00) which only sounds like a lot when you consider that each $1.00 is $100.00. Sometimes options are nice to you and sometimes not.

Starting with $5,000 in an account doesn’t make for the easiest time, when scalping for a hundred or two at a time would be easier. I guess somewhere, someone decided that being a daytrader would mean having $25,000 or more in a trading account ($24,995 doesn’t cut it).

So a friend and I decided having a full disclosure challenge, head-to-head, in trading stocks/options/futures would be interesting. I found $5,000 in an open bank drawer and Lindsey got $5,000 from some don’t-ask don’t-tell location, the race is on. Since racing to a million dollars would probably take too long we decided that we would race to $25,000 to start and if we didn’t go insane or lose all of our money, we would race to the next interesting amount after that.

I use charting sometimes, which I would have now but my broker can’t seem to functionaly pass along quotes to the charting program I use. Anyway.. since I’m finished with this first post, I will tell you that I won’t be easy competition for Lindsey because I guess lucky sometimes.

Lucky.. that’s me. Maybe I should use the name Lucky instead.

Bought:
BIDU Dec07 $370 put (BPJXN), 1 @ $49.50
stock price entered $335.39