dha
Member
Hi. Serious question. Can you please explain to a noob why this is a good opportunity now? I mean, less than a week ago on a Wednesday, it hit about the same price point. I get that the macro change today is the VW emissions gate and the Apple car rumor. But are those two events convincing enough to make that price look like a bargain now? Would it not have been a bargain a week ago as well? Not trying to troll or anything, just want some perspective among you experienced traders. Thanks!
I don't mean to speak for others on this board, but to me, the sudden release of the WSJ piece during a strong rally and the subsequent drop in share price absolutely REEKED of price manipulation / a coordinated bear attack. I've seen enough of these in the past to make a pretty good guess at how it would play out, and I turned out to be right. Once the initial panic subsided (around $256 - $258) volume began to dry up and there wasn't much more movement in the stock. I saw this as a signal that the bears had run out of ammo and that the price would most likely rebound once the market realized that the selloff was unwarranted.
Around that time I scooped up $270, $265 and $260 calls for $2.50, $2.40 and $4.00 respectively. As soon as we bounced back to the low $260's I sold the $265's and the $260's for $3.50 and $6.00, respectively. I sold the $270's right before close for a slight loss, and wound up booking a net profit of just over $3,000 today.