Tuesday, January 31, 2006

Sweet day Jan 31 sending GOOG to hell

I made excellent decision today to keep all my put position and sell long position before ending.

I sold 100 GOOG at 436.28 before closing, although I lose $1370 at this position. it could turn much bigger loss if I keep it.

My 4 $390 put and 2 $380 put are kept in hand

What an exciting news! GOOG missed target a lot! It dropped to $350 after hour.

I could win a lot if GOOG sit at $350. It bounced back to $380 at the end of AH. It is a pity I can not trade option AH.

I will focus on tomorrow's trading

If 390 PUT is $35 and 380 PUT is $25 tomorrow. (Suppose GOOG sits at $380)

My earning would be : P(380) = 200 * (25-8.5) = 3300
P(390) = 400 * (35-11) = 9600

IF 390 PUT is $65 and 380 PUT is $55 tomorrow. (Suppose GOOG sits at $350)
My earning would be : P(380) = 200 * (65-8.5) = 11300
P(390) = 400 * (55-11) = 17600

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