Wednesday, August 08, 2007

oopps!

I guess I forgot to take some profits last week. I should have closed 2 positions: Countrywide at $25, and the WaMu Jan 09 $20 put. I should have closed Countrywide because $25 is book value, and also because it would have given me a 40% profit. If it drops another 10%, that's only 6% on the original position. I should have sold the WaMu put because the price spiked on abnormally high volume. I may not have caught the highest price, but at least I could have put in a high sell and tried. Next time, I have to remember to buy low and sell high.

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