Closing 2 Trades (AAPL, NILE, AMZN, RAX)

By: IS
Date posted: 02.16.2012 (8:02 pm) | Write a Comment (1 Comment)

Print This Post Email This Post Post a Comment

Ah well…. this is certainly a bitter sweet post. On the one hand, it turned out that Blue Nile (NILE) did report very poor earnings and the “no-brainer” trade that I had done between the best (AAPL) and the worst (NILE) turned out to be a great one. Today, NILE lost 10% or so (it was down much more at some points) leaving the trade at +24,30% as of the close. It will be closed out tomorrow morning on the open.

Another trade that will be closed is a far worse story. Readers here know that one trade I avoid is opening new trades when a company is about to report earnings, it’s risky and seems much more like Russian Roulette than investing to me. I ended up doing the exact opposite on Monday, opening a trade where I went short Rackspace Hosting (RAX) against Amazon (AMZN). I got an email from a reader a few hours later telling me that RAX was reporting earnings on that same day. Couldn’t be. Right? He was right. I had checked my dashboard that weekend and had witched the trade I was going to take late Sunday. But I forgot to look back at earnings dates…! So from that moment on, I hoped but of course RAX came out with great numbers, which is probably best since I should be punished for such a mistake. Long story short, that trade is currently down -20,16% and will also be closed!

The average trade has returned 4.92% so far this year which is still very solid. Stay tuned for a new pick on Monday!

1 Comment »

Comment by Zavi — February 17, 2012 @ 2:15 pm

wooowww when I saw the news on Blue Nile, it was quite impressive!!

too bad for amazon… fell -2.5% yesterday after MS downgraded the stock because of Apple competition (gained 4% last year…)