Tuesday, October 24, 2006

GOOG Call Options

On 10/9/2006, I purchased the GOOG $450 Calls for $13.50. As of yesterday's closing price they're now up to $36.90, a gain of 176.33% in 10 trading days.

I may hold these options as they're expiration is 11/18/2006, so I still have a bit of time left. If tommorow's price action is good, and the stock drifts higher, I may go ahead and take some profits. I believe in taking partial profits off the table, and leaving the rest to run. I've read many opinions on this topic as many tend to disagree and don't see a point. Also there are many advocates, such as Jim Cramer who encourage taking partial profits.

Check out 1Option as he has many insights to trading options and even an article on taking profits as well.

I really wonder how high this market can go, I mean we do have an imporant FOMC meeting this week, so we could potentially go higher or bust from bad news of inflation. Yea yea, we're all saying here on our blogs, 50/50 chance, that's the magic number, either go long or short.

Check out one guy who is really short in the market, and quite frankly I feel sorry for him considering he's been short in the past oh let's say 1000+ points or so in the DOW? Tim Knight.

That's all for now,

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