Thursday, October 26, 2006

All that Money on the Table

Various distractions at home and at work left me with time for only 1 trade today.

Obviously I left a big point on the table, but the key question here is if I had to re-do this trade all over again, would I do it any differently, not knowing that it was going to slide all the way to the FOMC meeting ?
Probably yes, because if I were to re-do the trade all over again, I would notice the declining volume, meaning there were not enough buyers to continue the push it beyond 480, ie, there were more signs showing up to indicate an increased risk in this trade. That meant going for the quick scalp once it failed to hold 480, instead of holding out longer for more gains.
Also, I'm not too sure how many more of these $10 days that Goog has left in its bag of tricks. Without these big $10 moves, I'm not sure I would want to risk another options trade. We'll see how things unfold in the next few days.

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