Monday, August 31, 2009

A little hindsight investing idea for Dom

If $700 was your threshold for pain on AIG puts, maybe next time you buy a put spread to the tune of $700. This way if things move against you short-term, at least you still own puts for the longer term. There is nothing worse than watching your ship come in later and you're no longer on board.

2 comments:

  1. Yes that is a good idea. I got pretty pissed off when with in 10 minutes of taking this position off I could had saved myself almost $300 bucks. And and hour later I actually could had sold it for a gain. I knew this thing was volatile, which is why I was willing to put on the puts. And this week AIG is moving to the downside. But it is what it is.

    Thanks for the advice.

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  2. I wouldn't worry about it. If you made BIG money on AIG you should've also lost money on it too.

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