Tuesday, April 29, 2008

And There you go... my previous post was spot on.

The protective put deal would have worked out for an earnings disappointment like this. However, the report wasnt all gloom. I have no exit price at this point. The typical would be a trailing stop of 10% (i am looking long and looking to avoid being tax 35% vs. 15% on securities cashed <1 yr.) Anyway, prior to earnings the stop/exit would have been $67ish. If that's the case your protective put would have been 67.5 or even 65 (worst case scenerio).

being that i didnt have any free capital. i left it alone. what i could have done was sell a share and get my protective put aka insurance.

The aftermarket action of $5 in the red may narrow by the premarket tomorrow (or widen). The FED also will have a say on how much the economy stinks and a rate cut to boot. Anything can happen when the FED is involved.

Suffice it to say, a price drop for V could actually just bring in more buyers. I am still in the green on this and remain an investor NOT a trader for the time being.

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