Just for a smaller trade, in case game picks up momentum after. It might take a few days for game to settle out however, but I doubt it will drop much more from here. If it does pick up momentum, there is no guarantee snda will move in tandem in real time. For example, sohu's stock price lagged cyou's momentum rally post ipo. So if you want to play hopes for momentum, game is a better trade to make. There's nothing wrong with buying snda here anyways since eventually, the two should correlate.
sorry hobo, I understand why you sold out your snda trade position, I was just curious as why you chose to trade game over snda at these prices. myself I sold some puts today with the intention of starting a position in snda.
I didn't sell any snda today. What I have is my core position I've held for years and don't plan to sell. Last month I took a "trading" position in snda in the mids 40s hoping for an earnings run to 60. This was on top of my core position, and I make this trade almost every quarter as for some reason, it's always weak heading into earnings then rallies at some point after. I think I probably gave more detailed information on the snda board when I started the position, but in any case, when snda spiked a couple days ago, my limit sells hit, freeing some cash. That's the only reason why I'm taking a small stab at game. I thought today's game performance was rather odd, considering the heavy oversubscription, but really, it's not that surprising. cyou sold off immediately on its ipo day too, before its rally. I still remember buying snda originally back in 2004 when it ipo'd. It openned around 14-15 then sold off immediately to around 11, which was when I bought my first shares. Anyways, outside of trading rationale, game itself is kind of cheap at 11-12 anyways, basically representing 11-12 forward pe. If it does pick up momentum in the following weeks, I plan to sell out anyways. I think most of the trading in the sector is a bit distorted today due to emotions. Like snda for example, right now it has probably 20/share, or more, in cash. We'll probably heard some news on how they are going to spend it pretty soon, either buyback to reduce the float for snda shares, or larger strategic takeouts.
I got some trading shares at 11.75. Wasn't planning on getting any originally, but since my trading shares of snda hit my ask to sell near 60 the other day, figured it's worth a shot. This market right now is trading too irrationally. Gotta pick your spots and stick to it. I got a trading share buy for pwrd at 42.25. Still own large positions in both snda and pwrd as core holdings.