Let me see if I understand correctly, you borrowed just over $1 million dollars worth of AMBA and bet against and somehow you shorted 10,000 shares at $104 even though only 6,400 shares actually crossed the wire at that price? That is an amazing trade. I am wondering what broker gave you those 10,000 shares (considering the beta I am assuming this has a healthy interest rate for that million dollar stake you just took. I have to also say, anyone who would place a million dollar short on a rising stock on a Friday afternoon...pretty ballsey...Not the trade...the idea that anyone would believe you.
That is almost exactly how I played it. The premium on the 95's was pretty nice and I was considering selling at 92 meaning anything under 98 was a good trade. But because of the run up this stock suddenly represented over 1/4 of my entire holding (1500 shares only cost me $15,000 back in 2012). I got cold feet worried that the market could push it back 12 points if they don't beat enough. For me 12 points is $18,000 and that is not a risk I could take. I really hope I can get back in, this has juiced my holdings for the last year and selling out of the money calls has been good for an added $3,000 once every six weeks or so. Good luck to you. I hope it does not get called away, instead I am hoping it does drop to 88 AH and I can get back in. If not, it was a great ride.
Great question Kevin. In this account, it went from a tiny portion to (you pretty much nailed it) very close to 25% of the entire portfolio. That means those up days were really good and showed awesome returns, but also part of the reason for the cold feet, a correction of sorts would erase some pretty good gains. In all honesty, not only have the gains in this stock been spectacular, the fact is that they have covered for less than stellar decisions like the fact that I have quite a bit in REITs and similar stocks that pay healthy dividends but are taking a beating due to the pending interest rate hike. The good thing is I now have a portfolio with a very healthy steady income, the bad is those prices may not have bottomed.
I do have the entire $137k+ to invest right now as this is in a tax deferred account, so no 15% tax. It is starting to look like chip equipment is ripe for serious consolidation. Some of these companies are in strong cash positions making them prime candidates on either side of the equation.
I have been holding since $9.98 for 1500 shares. But just as things look brightest, I start getting nervous. Twice now I bought put protection and wasted the cash (not a lot considering the gains, but still total evaporated funds). This morning I really considered again just adding $88 put protection just in case the street gets crazy. One thing to think about it, unlike it appears many of us here, a lot of holders now are pure momentum players who are in in the mid-80's. They are looking for the quick gap up to triple digits (and no reason why they should not see it), but Wallstreet is fickle and momentum players more so. The slightest little footnote in the earnings report like a delayed order or a shift towards lower end chipsets (not expected) could cause an easy 20 pt. tumble. So I am out today, in at $9.98 and out at $91.41. For your sake I hope we hit triple digits and never look back...for mine, I hope for a nice little 5-7 point pull back before going there. Good luck all.
Sentiment: Strong Buy
Ha, good one. Since I was in for AMBA at $9.98 and you bought in at what was it $62? If I was concerned about boobs I could buy them with my returns. But thanks.
While you have done alright the "no matter what" comment means you don't know how stops work. Best of luck.
Congrats on thee strong hand. Clearly I sold too soon. No regrets, it was a great ride. I actually got very lucky today as I had that money burning a hole and bought 10 call options in JUNO. I am not a biotech invester but the chart looked incredible and the news looked really solid. But I'll be darned if it didn't turn into a day trade. I was up 55% and sold out. Sure enough it kept going up. One day I will learn to buy it and put it away like you guys. Anyway, great trade all of you, congrats I am happy you are all still long and strong.
I am not forgetting. I am seriously considering biting the bullet and buying 10 calls so I can get back in if we see a huge jump but the calls are jumping with the price right now. Looking like a bad call on my part as I could have held on and sold the calls and collected almost $5,000 in premium even if the stock got called away. But....never regret selling for a profit. I am hoping at some point to get back in sub-90. If not, man it was a great ride!