Should i cover. I was long and closed my earlier position $90.. Today's result was no doubt good..but the valuation
is crazy.. what should i do..now it closed close to my $1000 short at $109
sincere inputs pls..no bashers or pumpers.
Well you were playing with fire shorting a momentum stock. Always use puts with stocks like these, never short common. Judging by todays action, there should be plenty off pullbacks to cover if you don't panic. Learn and live.
ANTS, I sincerely encourage you to read the post by lastoneout who covered his short by $23k losses. You will also find my posts in there as well. I used to be a short on VMW as well, but I covered my VMW short and went long today. Don't fight the fact that in fact VMW is a great company with fantastic technology. Don't ever compare AMZN with VMW. VMW has such a great technology that so far they are the best in the industry. I have lost so much money this year playing shorts, but finally came to my senses to go long on many stocks to make most of my money back. Don't fight facts and the trend. It is not too late to go long on VMW and make some serious profit. VMW's business is going to grow bigger and stronger. Enjoy and be rewarded with the success they make and will make in the future. Best of luck.
DO NOT EVEN look at the valuation when the stock is in favor. But even you look at valuation, it is not overpriced at all. They grow 300%, current P/E is 274. PEG ratio is below 1. Then if you look at forward P/E and estimated growth, you will get forward PEG is also low.
so what about those that bought amzn at 100 and it tanked in the morning ? same as you but opposite side. Take your loss or lose more . And go long or buy calls....make it up on the upside.
I would love to help you out but I think natural selection as Darwin defined it will eventually take care of you and your progeny. So my reply to your question is simply: Do nothing, sit back and wait for nature to do its thing!
Damn, how I hate these mindless retards...