Tough day today
I forgot the rule about it is not enough to be right you also have to have timing. I was in great shape with HAUP and the pump and dump with that until IB ran out of shares (in fairness I did not check it again today before shorting because had I noticed that the shares available was small I would have had to pass on it). Then I traded TIVO and started out great but some how had put it in my head that the price would come back to or near the daily 200MA as “usually” a stock will not punch through on the first try and with as far as TIVO went I was feeling pretty good about a retracement to the 11.90ish price. I was somewhat right as I traded it and had a very nice gain but as it moved down further I started shorting more and fading it until I gave back my gain and took a big hit. I then went to plan B and started trading around the NBBO and that brought my average down but rather slow as I was not putting on a lot of size in the trades again with the thought that it would bounce back hard which of course it never did. I am still short HAUP as that is a total dog and there was confirmation with the selling pressure being larger than the buying pressure today and still very short with TIVO.
I added a little to my C and cut loose one of the BP put options that I wrote and was planning on rolling over until my focus went to TIVO. I will most likely cover the other May option put and rollover it to a June put on Monday. In the same process I did also buy small BP and wrote a call against it as the volume of puts being traded along with the spread made the covered call a better choice than just a naked put.
So all around a tough day as I am having to hold HAUP longer than I would otherwise have to if I had been able to fade the open as it was a perfect opening fade for me. Had I not done the research on it and figured out there is nothing behind the curtain I would have had to cover at a loss (of course I would not have traded it to begin with also) but at least all I need is to wait it out (along with the pain in the process) and this should see sub $3 shortly. Maybe IB will get some shares to short for Monday and if there is another chance I will short more. Today took a lot of this weeks gain away but some education gains are with me for the future as well so it is not all bad.
BP May 52.50P – 479
HAUP – 419
TIVO – 2966