BIDU hates me
I’m thinking to myself, I lost when I bought the put on BIDU, so what if… and that’s where I failed. I wondered em>what if which to me turns into let me try. So I tried and need to make this post quickly, so I can cover my loss.
The DJI and NASD and S&P and Russell 2k and everything else that shouldn’t be up is up today. So I figured since BIDU was down $3-ish, I would take advantage of the situation of it’s lag time and buy a call on it.
Ya, I know. I’m not carrying enough money in my account to be doing things like spreads and this is not a good spread in any way. In fact, if you want to learn how to do market spreads, don’t look at this post for any info.
Buy:
BIDU Mar08 $260 call (BDUCV), 1 @ $7.30
stock price entered $243.27
I’m hurting right now, as the option is aleady down $.70 and I haven’t even finished writing up the post about the trade.
I might be covering the loss before I finish the post. That would be a record for me… showing good judgment by covering my mistake twice in a row. There’s little chance that I’m that bright, so don’t worry about it.
I’m going to hope that either BIDU rockets upwards or drops like Obama’s chances did last night.
Rules for this trade:
) If the call value hits $6.60, I will sell and take the 10% loss.
2) If the call value hits $8.90, I will sell and take the 22% profit.
Can anyone tell me if my loss/profit taking percentages should be altered for some reason?
Tomorrow, if I have any money available, I will be making a coin flip to determine my direction on an option.
Also, stay tuned for later today when I tell you how I voted (and I’m not talking about the primary in Texas either).
3 Responses to “BIDU hates me”
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I have suggestion, instead of flipping a coin, just buy a call or put depending on the stock’s open if it is red buy a put if in green buy a call. I know it may be just the same thing as flipping a coin, but I think the probabilities are higher.
Since I’m always open to suggestions and this is a suggestion, I’ll do it! The next trade I make will be in favor of the color of the stock’s opening. I’ll buy two of whatever. One set of options will be based on opening color, the other on a coin flip (tails = puts & heads = calls).
yeah hhhaaa…. that would be an interesting game!