Friday after the market rally near close I decided to buy some DIA puts near close. It was up and I decided with all the run up that week the market needed to pull back some because too many people got caught short. Too many people are going to take profits. Then crisis is still not over and the market had rallied too far too fast in 1 week. The crisis in Europe was still there and I don't think they would have showed the same excitement for GOOG as the US market did.
Saturday I messed up my computer when I tried to update the BIOS from XP. Monday I woke up and them market was down. So I jumped into my daughters room on her computer to see if I could close the position but could get into the account. I have Linux on her box. Not fully configured to do some of the windows stuff (dont want her downloading too much stuff). I guess I could have called it in but I also wanted to monitor the trade to see
I could get the next best sell price.
I got to working on that machine. I got into the brokers webtrade. I noticed that at the the puts had trade as high as +$0.60 per contract (+ in front of the number means a profit) and was not trading at +$0.30. Do I sell or do I let it ride to see if I the market going to go back down. So I decide to let it ride. Ok. 1- 2pm I got the box up to where I can get a semi decent chart. Now the position is down. -$0.50. Ok. Let the trade develop. Sentiments not that bullish anymore. I have time before expiration. I spent the rest of the day trying to get the box more decent to where I can get a better chart for the next day.
Today Tuesday, I logged on check the charts market falling down. I am tempted to sell. Go on my favorite chat and read some of the other traders analysis. Decided to hold on till the market came down as most of the respected ones on there were betting on it falling. Market fell DIA fell more than $1.50 at which point my position was near its max. The bid/ask was +$1.00/+$1.10. Then the market start bottoming and then slowly drifting up at which point I was drawing my support resistance lines and saying if it breaks above this line I am selling and if it falls again. I will cuss for missing the party if it rallies but I will not watch this profit turn into a loss again. Near 2:00pm the stock move above the resistance and I sold and locked in +$0.60. I ran some errands after than and when I came back later after 5pm, the position would have been negative again if I held.
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