Thursday, April 24, 2008

Trades: POT, DZZ and NFLX

As noted in comments, I made a few trades.

I covered 100 shares of POT at $194.36 (short entry at $208.77) for a $1441 gain (+6.8%). The stock was 4 points from my target, but today's drop was too good to sit back. I may enter again on a bounce.

I exited 400 shares of DZZ at $29.10 (entry at $26.60) for a $1000 gain (+9.3%). I have to admit, this trade is satisfying considering the criticism I received on entry. DZZ is a leveraged gold short.

I went short 300 shares of NFLX at $32.23. This is a classic earnings breakdown-pullback setup. My stop is above the long bearish candle formed two days ago

5 comments:

Vinay said...

Kudos to you on the gold trade! Great traders stick to their convictions...

Stan said...

Be sure to keep your tight stop on NFLX. I just tried to piggyback on your short idea and Ameritrade said no more shares were available to short. Could be a set up for an explosive short squeeze. I bought some ITM June puts instead, and will keep a very tight stop.

Trader M.D. said...

You're gold trade was good, no doubt, but the POT trade was even better.

Must have taken some serious conviction to short such a strong stock into earnings.

I personally don't like to hold into earnings and would prefer to sell and re-buy after earnings or just sell ahead of earnings, but none the less... well executed.

Trader M.D. said...

er *your

The Market Speculator said...

Thanks for the tip Stan. NFLX does have big short interest.

Trader MD: The only reason I held into earnings was I had some leeway until my stop was hit. The stock was at $206 and my stop was $215.

Thanks Vinay.