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As of: 11/20/08

Member since: May 07

Hey, man. What's the plan?

I have to admit that I'm totally baffled by the market these days.  I feel like I'm better positioned because my bear spreads are offsetting my long stock positions to some degree.  But in truth, the only trades that are working as planned are the ridiculously boring bear credit spreads that I've set up way out of the money.

Maybe ridiculously boring is a good thing?  Maybe I do have a plan... 

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Will Profit

Member since: Mar 07

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retired
Age: 90's
UNITED STATES
Will Profit
These wide daily swings up and down have been a great opportunity to make money on  boring calls/puts. I'll take it. I'm going to miss it if things ever calm down.
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GS751

Member since: Feb 08

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GS751
Why is the market rallying today with all the bad numbers?
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rivercity

Member since: May 07

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15 Day -11.87%
1 Month -11.37%
3 Month -18.42%
6 Month -18.08%
As of: 11/20/08
Trades 1182
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Age: 40's
La Crosse, WI UNITED STATES
rivercity

You're asking me?  I think the news is already priced in - and the news isn't worse than expected.  If your guide is P/E levels, stocks are very cheap. 

What I'm getting out of this that all of your trades need to be hedged in some way.  Trade spreads, set stop limits, stick to your plan.

For example - I bought puts against EBAY.  But when the stock didn't move down - I didn't hold them hoping for better.  I took a small loss, and went to the next trade.  

What's looking successful for me this month are credit spreads WAY out of the money.

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