Nightmare begins again on NVDA from Mar29,2006

Continuing from yesterday's success of shorting NVDA (win $366),

The starting position was:
FDRY 35063R100 FOUNDRY NETWORKS INC 200 17.8500 3,570.00
JRCC 470355207 JAMES RIVER COAL CO -200 34.4400 -6,888.00
NVDA 67066G104 NVIDIA CORP -800 54.1700 -43,336.00
THI 88706M103 TIM HORTONS INC 200 26.4800 5,296.00
VPHM 928241108 VIROPHARMA INC 100 11.4200 1,142.00


NVDA started at around 54.00. I thought it just bounce up and down. I didn't realized it may have big jump coming in the following days.

It started very low today (May 29), it even droped below $54. I actually reduced my position before I went to office. I covered 300 NVDA from 53.96, 53.98, 54.01 at around 9:40AM. If I don't try average down, I won't have such big loss. From 9:40AM -10:18AM, NVDA JUMPED to 54.99 near to 55. I started shorting NVDA, totaling 1800 shares from 54.98 to 55.47 from 10:18 to 11:13AM. In order to short 1800 NVDA, I covered 200 THI at 27.12.

I then covered 200 JRCC at 34.27 and 34.28. Then I shorted 100 NVDA at 55.48. At this moment I have -2400 NVDA with average cost around 55. My leverage ratio is around 3.4. I have to clear some positions. I cleared 100 VPHM and 200 FDRY at 11:20AM.

The NVDA continue rising to over 56.90 way higher that my cost $55.00. I have no fund to short! Damm, I am bursted. I have to wish it drops in the afternoon. It didn't drop. It maintain the 56.60 level. I leave the shares there expecting system to sell them for me. I went to staff meeting.

It did trigger the margin call. The system sold 600 shares of NVDA from 56.85 to 56.92 at 15:50PM.

The market closed at 57.08. With 2400 short positions, I lost $4800 in one day!!! This is the biggest single day loss in 2006. The nightmare is even bigger than THI and JRCC.

The ending position is -1800 NVDA with cost $55, closing $57.08

The ending balance is $40247.92

The leverage ratio still sits on 3.0.


It is 15:19.