Dominican Republic Island holiday was a great breakaway but FEAR set in markets with BEAR (Stearn) EXPLOSION news every where and I will not deny CNN news was one of the pastimes besides sun and drinks.
Looking back, leaving open trades while on holidays was not a great idea after all. We still have 2 open trades and time line is so very thin, mere 3 days to expiry.
Other two open positions in AAPL with more then enough time on our side have already been closed this morning with nearly 50% profits and details will be posted shortly.
Fear set in since last Tuesday has eroded even the normal market movements and affected our values. Tuesday with 400 + Dow movement was a perfect day to get out of our two open Index positions, but markets since have swung back with out filling us at "breakeven limits" due to BEAR STEARN news and this will likely hurt bad.
Markets will slow down for FED interest rate news at 2 15 this afternoon and we will monitor our 2 sick positions with " bated breath and hanging tongue ", an expression usually used and saved by one of our grown up friend for big boys club when we are out partying.
Pre FED huge rally this morning is in anticipation of atleast 75 basis cut (or even more, as some have predicted 100 to 200 basis points) looking at the precarious credit and liquidity issues in the markets. Market are in complete turmoil and Derivative meltdown is the focus. Derivative markets have grown to over 45 Trillion with " T " and even a 5 % default in these markets will be a write down of 2.5 Trillion with " T ".
And now, just think about this for a second ... if for any or what ever reasons, there is just 75 basis cut or less, market mavens feel this is not enough and this could easily erase the rally of today, $ VIX spikes back up. Just a thought on " FEAR and GREED " emotions so very easily turned either way.
Have a nice day and profitable one at that.
Harry
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4.05 PM:
Two trades we closed in AAPL today are as under:
2008 Project M .. TRADE # 26: AAPL
Mar 06, 2008 AAPL Buy Apr 135 Call $ 3.10 .. 2 Contracts
Mar 18, 2008 AAPL Sell Apr 135 Call $ 4.55 .. 2 Contracts
Time: 12 Days
Return: 46.77 % or $ 291.00
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2008 Project M .. TRADE # 27: AAPL
Mar 06, 2008 AAPL Buy Apr 130 Call $ 5.16 .. 2 Contracts
Mar 06, 2008 AAPL Sell Apr 130 Call $ 6.90 .. 2 Contracts
Time: 12 Days
Return: 21.62 % or $ 520.00
Account Value: $ 11,020.90
