shorting the jumping cat

Cat falling like a stone. Cat down 3,25% and my stock position is in the plus!!!

Option, strike 70 is up for 54% for today.

But still, timing was not that good. Had lots of pain with that trade, almost a nightmare.
 
Yes it looked like a painful trade, but seems to have worked out for you. I personally wouldn't have taken such chances with a strong chart like CAT, but your instincts seem to have worked.

Thanks for posting the trade.
 
Quote from heilbronner:

Cat falling like a stone. Cat down 3,25% and my stock position is in the plus!!!

Option, strike 70 is up for 54% for today.

But still, timing was not that good. Had lots of pain with that trade, almost a nightmare.
More...


I hope you clean up on CAT...

but I learned a long time ago.. that violating basic rules and discipline... AND then being "RIGHT" after all the pain... only reinforces a bad habit and someday... it could (and likely will) cause serious loss by giving one false confidence!

I am not against adding on or averaging in.. although I personally don't do it much... but I prefer to do so AFTER there is signs of (in this case) a possible 'break' in the trend, i.e after a large reversal day!

Also I am totally in favor of going with one's gut... intuition... as I do that and have done so since the late 80s. But within that "feel" you gotta have discipline, and adding to a 'loser' is unnecessary to do. Sure maybe it seems more like a short the higher it goes (or lower in cases of longs); but that can often be a sucker play.

G'luck bro...

JMHO

ICe
:cool:

p.s. one more question to 'ponder' and post. Do you now exit your trades having apparently recovered much of the paper loss... OR will you add on, after having CAT break lower? Interesting to see what you do...... now that it is heading in the DESIRED direction. Bonne chance!!!
 
update: covered puts, strike 65@ 0.50 and 0.55, remains a loss of 0.325

puts, strike 70 are @2.05, a plus of 0.675, so far.

Option positions as well as stock position in the green so far.
 
Look to an imminent announcement from the likes of Volvo CAT etc..
I wouldn't short CAT until after any such announcement...

But then again you have considered all this, haven't you?

LOL

ps I have found the one perfect contraian indicator: Heilbronner. [/B][/QUOTE]


Are you with me, running bare?
 
update: In order to take advantage of the hig intraday volatility I also try to sell some options, strike 70.
My ask are @2.40, 2.50. If hit, I try to get in @ the bid for a lower price within the day.

Almost a 2 bagger in the 70s series.
 
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