Death to financials part deuce

Well I'm glad I stuck to my financial puts and didn't get out during the short cover rally. The only concern is how long to hold these puts? The news headlines are definitely in my favor for FNM as one former federal reserve president said it is insolvent. It is funny when you type in FNM in google and it pulls up a band called "Faith No More" which I think exactly what the market feels about Fannie Mae right now.

Even more ridiculous is WB that was upgraded yesterday by MER. I should just get a put on MER for that comment. It was down the day they announce their upgrade yesterday and is down today premarket 9%.

I currently have financial puts in: HBC. I sold my WB, FNM put around market open. I still have my GOOG puts I'm hoping AAPL will put them down with them after announcement of 3G.

Figures...

Same thing happened. Last time the market ran up so hard a couple of weeks back (early June), the next day it dropped 400 points. Same thing happened this time. My financial puts got absolutely slaughtered late yesterday due to the run up. Shorts covering, people thinking the market's too low and stocks are cheap? Not until I see the VIX at 30, but more likely it'll run up to 35. If I had some more guts, I would have bought some more puts late yesterday or early today, cuz I had a sense that the market was gonna take back it's gains.

I seriously have no idea why people are even bothering with financials. Don't they see that every time they jump up, all the smart people use it as a chance to get the hell out? A couple of days to a week later, those stock are even lower. Just look at the chart people! Wise stock traders know to buy high and sell higher. Can't it work the same way with stocks going down? Buy puts on a falling stock and sell when the stock is even lower? Sure you might get killed, but, wtf, stock market is just educated gambling no?

One a side note, the only stock I wanna see run up hard is GOOG, right before earnings, to say...oh...600 or so, so I can get the 560 put for a buck and watch it fall to the 520s. Seriously, start buying some GOOG, cuz the market is cheap!

NVDA dead, financials also dead but all other tech up

So today's market action kind of sucked for me overall. Especially NVDA. I learned my lesson, don't get in early if the market isn't ready for it. There's still a lots of sellers out there. The stock traded more than 2x average volume. Oh why couldn't NVDA move up like the rest of the tech sector? I cut my losses by selling my Jul 15 put @ 0.10 (50% loss). I still got my Aug 15 put although it lost almost half its value by the end of the day. Hope INTC wants to buy NVDA, Intel graphic cards blow.... take a hint from AMD why they bought ATI. MSFT looks like it wants YHOO so add NVDA for a two-for-one deal! You'll need them to make chips for your XBOX 720, then you can force Sony use crappy ATI chips. Or uhh Sony you can buy them too and long as someone buys NVDA for a high price!

So because all other tech is doing great, my GOOG puts blew today but not as bad as it could have been. Too much strength due to AAPL jesus phone coming out soon. Another lesson for me: Don't buy AAPL and expect them to move opposite of GOOG. I made the mistake of buying AAPL calls and GOOG puts at one point... they worked against each other so my profit = zero. Did you know Google GEO Eric Schimdt is part of the board of directors for AAPL? So uhh, mad cooperation there. Well I'm looking for a exit for GOOG as well because built some nice support where my put is located... 530. I won't post up fake negative GOOG comments on this site since its own by them. Love your blogger GOOG!

So not all was bad. At least financials went my way. I jumped into HBC Aug 75 put @ 2.90. Did great during mid-day but started going up towards the close. I'm not worried though, I hope AA earnings are like we're dead to set the tone of the market for the rest of the week! So let the market die! I got more puts than calls.