Monday, February 22, 2010

Closed NEP @ $9.82

I went against my own rules again and closed my position in NEP @ $9.82. I just can't shake the feeling that the markets are heading lower short term especially the chinese stocks. CAGC in particular looks very extended here and due for some sort of pullback. In light of the strength I have seen in CAGC I came to the conclusion that NEP will get hit hard if the markets correct since it was not able to rally to new highs like CAGC did. So I closed it for a total profit $241.00 after commissions. Leaving me up around $50.00 for the month. Although I said before I was not going to short anything. I bought 1 AAPL Mar 200 Put Option contract for $547.50 including commission. So if AAPL moves above $204.00 - $205.00 then I will close out the position quickly for a $200.00 - $300.00 loss. However, if it drops to support around the $188.00 area I will take profits (min. of $1,200.00) a 4:1 risk/reward trade. I must admit that this is very much an experimental trade, against my plan and significantly exceeds my normal R on an individual trade. Nonetheless I hope it works!

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