The day was 3/20 of this year and I had recently started taking notice of Schaeffer's Research blog
because of the way it was working out positively for me. The put/call skews were of particular interest to me because options buying was HEAVY to the Put side right before Bear Stearns crashed on the 13th of March. I noticed this and bought a contract to join the ride on the 12th. BOOM. It hit paydirt a day later. I got out with 100% profit another day after that. Well, if I would have held on a few more days, I could have cleared a 600% profit. Damn the luck.
What is reminding me of kicking myself in the arse is the fact that there was another company I've been watching that I HAVEN'T bought into. JA Solar (JASO) I even recommended it and talked about it on the 20th and 25th because it's a company that Scott would really like. Well, stupid me, I didn't buy in and I don't exactly remember why. I think it was my dreamy little PCZ that I took a shine to. Yeah, I just closed that position yesterday for a 75% profit on Petro-Canada, but I want to take a look at what could have happened with the call contract for JASO that I DIDN'T buy. Ech..
Looks like on 3/20 when I first talked about noticing the company again, it closed at $14.99 a share. A single contract for an APR 15 Call was 2.50. That's $250 cost to me (since it's a contract to control 100 shares). SO, five days later, the stock is trading at $17.13. Nice. I could have cleared a couple hundred profit. Damn. It gets worse. Today, I notice the damn thing just got upgraded by a few brokers, and is now trading WAY up at $22.46. Crap. That same APR 15 Call now has a bid/ask of 7.10/7.50. Yep, move the decimal points over two to get what I could have sold it for had I bought it back on the 20th. Almost a 200% profit. Oh well, that's how the cookie crumbles, eh?
My head hurts. I'm going to go worry about something simple, now, and contemplate when I'm going to fit in some lawn mowing time this weekend. At least the weather is supposed to be nice.
CZ
2 comments:
my head hurts too trying to understand all of that!!!
:-)
Dude, where's the post about mowing your lawn for the first time? Or photos of the house? How about a detailed account of moving your stuff (especially the Jeep) over there?
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