NYX is down to the yearly lows ... may create a double bottom in this area.
I sold out in the last rally and am looking for a good place to buy. Anybody buying down here?
Buying CME under $400 could be the "trade of the year." Whenever the economy goes into recovery mode ... I'd expect CME to trade above $700 again.
My strategy is that it's a longterm hold to collect dividends and occasionally sell far otm calls to collect a little time premium while waiting...
Quote from S2007S:
When GOOG was 700 everyone thought it was going to $1000, what happened, stock fell over 45% ...
I still think Google is going to 1000. That's why I bought them at 425 back in March.
This is one that every time it rallies ... you have to sell it short. The company makes a boatload of money, but they manage to spend almost all of it. It's growth prospects are steady, but by no means outstanding.
The way to play NYX ... is to sell those rallies.
CME prints money. They're a cash machine and they pay a dividend. There going to take a hit because the entire financial industry is in turmoil, and CME is in fact part of the financial industry.
I think its a long term buy.
Just buy them back at a loss and sell the higher strike. Trying to wait on a call to drop in price can be hazardous to you trading capital. In the case where the underlying has had a change in trend you'd be fighting the market if you choose not to adapt.
Don't let this loss be expand to...