Saturday, November 26, 2005

Thanksgiving day shopping

I don't normally shop on friday after thanksgiving. Just for giggles, I went to Fry's yesterday morning @ 7:30. There was a traffic jam all over the place especially near Fry's. The guy going in front of me stopped suddenly. That was not a good sign, I almost hit him. Few minutes later, I got the privilege to get into Fry's parking lot. Just then I noticed a lady messing up with traffic lights, she stopped right in the middle of the intersection. She wanted to go fast into Fry's parking lot, so she jumped some cars but got stuck in the middle of the intersection.

There were atleast 5 police cars just outside Fry's. One cop gave the ticket to this lady, I assume that cost her atleast $200. Hmm..She wanted to save $50 may be $100, now she is in the red (literally!) for $200. Penny wise, pound foolish.

I went into the entrance of the parking lot, that's the maximum I could go. There was lot of crowd, I saw many people (atleast 70) were waiting in line to get in the store. I just couldn't wait that long to get into the store. I took the u-turn and went to McD to get egg muffin. That was my thanksgiving day shopping!

When I got back home, I decided to do some shopping in Nasdaq. Loaded up some shares in CTSH, BRCM and CMED.

Wednesday, November 23, 2005

Trades this week

I sold puts in QSII. I did bull-put spread in AAPL. Both are doing ok.

Few weeks ago, I bought FSHOX (Fidelity select construction and housing fund). It's not bad, but I shouldn't have bought that fund. I think there is not much upside to it, especially after disappointing outlook from Toll brothers and other related building companies. This fund doesn't have investment in builders. But, it has investment in Home depot (HD) and the like. So far, I have only $15 loss in this fund, I am going to wait and see what happens with this fund.

On the other side, one of my holdings HFTFX (Hennessy Focus 30 Fund) is doing very well. These guys are really "focused"!

Tuesday, November 22, 2005

The power of stop loss

Sandisk keeps going lower and lower. It's trading at $46+ now. More and more bad news for Sandisk. Overall, it's still a good company. But, investors are not aggressive to buy this stock any more. They want to sell it.

First bomb came from Tristan Gerra on 11/7. He said that flash memory prices could drop. That means that Sandisk's profit will drop. I put the stop loss as soon as I heard this guy. My stop loss was hit next day @ $60. I am glad that I got out in time although I had to take $250 loss.

Check the SNDK chart here http://finance.yahoo.com/q/bc?s=SNDK

Sandisk may come right back to $60 range in few months, nobody knows. But, I don't want to keep "hoping" for that. For now, SNDK is out of my mind.

Friday, November 18, 2005

Sandisk - a failed trade

I closed SNDK position, took the loss of $250. :-( I bought back the covered call and sold the shares. Covered call premium limited the loss in shares. There is always a risk in going with the momentum. When the momentum turns to the reverse direction, things could get real ugly. I could have waited for SNDK to come back up. I don't want to hold up my money in SNDK and do prayers everyday. There are always other opportunities.

Monday, November 14, 2005

My Watchlist

I am watching following stocks closely, when the opportunity presents I am going to jump in.. Hopefully won't lose the shirt...

AAPL
EBAY
CELG
ESRX
BBBY

Friday, November 11, 2005

MVCO, ORCT

I bought MVCO @ 11 few days ago. MVCO is in construction, all real estate stocks were punished after Toll brothers' earnings disappointment. MVCO came out with nice profits. For the near term, this stock would be little volatile.

I am also keeping an eye on ORCT. It is a good company, but they have very few clients. I am very careful getting into communication sector. "Triple-play" (voice,data and video) company may click. I am not sure...

Thursday, November 10, 2005

Google and Whole Foods

If you are watching the market right now, you know what happened to whole foods. It didn't meet all the expectations, it's being punished right now. This is what will happen to all the high-flying stocks someday...Whole foods is a good company run by smart people. But, they can't keep satisfying investors' high expectations all the time. I suspect that someday the same thing would happen to Google too. I own Google shares, hopefully it won't happen in the near future!

I bought back the google put on 11/8 @ $2. For some reasons, Google got pounded yesterday and dropped $10+. Wonder what's going to happen today. If it goes to $350 level, it will get more interesting. I may even buy calls.

Disclaimer: I am not a financial adviser. I express my opinions in this blog. Do your own research before you buy/sell shares or options. Do not just follow what I write here.

Sunday, November 06, 2005

Recent Trades

I couldn't buy Google shares at all. It was just going beyond my reach. I sold Dec 2005, $340 put for $9.30. It's going for $3 now. I bought Sandisk shares and sold covered call on it on 11/3. It's working out nicely. Same thing happened with DNA shares.

Funny thing, whenever I sold covered call, that call doubles in value. It happened with all my recent trades -- BTU, DNA and SNDK. May be next time, I should just buy a call. :-)

I bought IWO Feb'06 $65 call. Russell 2000 normally goes up in Nov-Dec. Let us see how that works out. I bought that for $5.30, it's going for $4.90 now. I have stop loss at $3, let us see how this works out.

Disclaimer: I am not a financial advisor. I write my personal opinions in this blog. Do not just follow my blog, do your own research before buying/selling shares or options. Options carry substantial risk, you can lose all your money.