Monday, May 12, 2008

Friday May 9 - missing post

i woke up on FRIDAY and the entire market was going down and Nue with it and since i didn't know how much down and my Nue position was so badly out of shape, i sold it at 79. i should have held out a little bit longer, because it went down to 77.12 and i should have been able to nibble atleast 60 cents more of that, which on 40 puts would have been 2,400...but i was super nervous and it was a big weight off my shoulders with that sell. rest of the sells were good, MER at the peak and IBM close to the trough. bought some STLD, because at 34 it's just insane. i love that stock. then i went to sleep.

as i slept, i thought about what i did wrong with Nue (ok actually later, as i was drinking). first of all my play was slightly bad. i entered at 76, when i should have waited for 78/79. at 78/79, i would not have lost so much money. 2nd, Nue did do an insane break. it just screamed upward for no reason, no other steel stocks following, just Nue going nuts by itself. sucks, but it happens. 3rd and most importantly, i just didn't know how to handle the risk. i am used to 10-20 puts, where even a $2 loss translates to $2-4K. i think when i saw the $5-10K loss (on 50 puts) my position was initially taking, my brain shut down and my heart was like NO NO NO...basically i gotta grow the balls for these kind of big positions.

i woke up and saw NUE had gone down even more. ofcourse i over analyzed that for the rest of the afternoon. cmon people it was a $16,000 loss over the course of 1 week. i'm good, but that hurt.

STLD had dipped down even more under 34 (wow, backup the truck :) , but it was at basically unchanged levels and i felt ok holding it over the weekend, since i was LIQUID other than that.

then i got drunk. really drunk.

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