Friday, July 23, 2010

Trading Again -- Great Discipline Until it's Not

(c) 2010 F. Bruce Abel

So I keep discipline, keep discipline, keep discipline, day after day.  Then at 3:55 pm word goes out over the wire and on CNBC that the SEC is investigating the GS settlement.  Immediate plunge in GS to 244 or so.  I buy 10 240 August puts @ $3.10 (things were moving so fast that I put the order in @ $3.30).

When the dust settles the news turns out to be, if anything, favorable to GS, being the result of a Republican congressman's inquiry to the SEC Inspector General.

Today the disciplined thing to do was exit as delicately as possible, which I did this morning @$2.62.

You can do the math. Ayyyyyyye!