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


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.