In April 2005 energy and base metal stocks are climbing but there was concern over the price of oil $45, and the chance it would fall to the 20s.
same for base metals. (just after started the thread on cdn. oil sands).
the market sells off in three days, oil goes down a few dollars and base metals fall 5-6% off of their highs.
phoned a broker I know and he answered the phone "welcome to the bloodbath". though it seemed small looking back on the event at the time you could sense panic.
at times have plenty of options outstanding so I bought back two options on CNQ (cdn. natural Resources and ATY (ATI Toronto ) both at a loss.
within two weeks the markets recovered and CNQ recovered completely and ATY came back in just a few days. ATY did nothing but the option would have expired worthless and CNQ doubled throughout the year. (CNQ still owned some but smaller amount)
well on Wed, May 24, bought back TEk.sv.b Aug $66 Put options, and TRP. of coarse both recovered just like a year ago, Tek increase 8% in two day and TRP 3%.
do not like to buy back options that in a matter of days or a couple of weeks recover. still would do these same trades again; have over 40 options contracts out, and when a sharp sell off happens you just do not know when will it stop.
the goal is to limit losses during a sharp sell off; at the time have to protect my portfolio in case the correction lasts longer than just a few days.
Last year (2005) in the account in which I made the trades in April returned 32%, hope history repeats it self.
thanks
selkirk
same for base metals. (just after started the thread on cdn. oil sands).
the market sells off in three days, oil goes down a few dollars and base metals fall 5-6% off of their highs.
phoned a broker I know and he answered the phone "welcome to the bloodbath". though it seemed small looking back on the event at the time you could sense panic.
at times have plenty of options outstanding so I bought back two options on CNQ (cdn. natural Resources and ATY (ATI Toronto ) both at a loss.
within two weeks the markets recovered and CNQ recovered completely and ATY came back in just a few days. ATY did nothing but the option would have expired worthless and CNQ doubled throughout the year. (CNQ still owned some but smaller amount)
well on Wed, May 24, bought back TEk.sv.b Aug $66 Put options, and TRP. of coarse both recovered just like a year ago, Tek increase 8% in two day and TRP 3%.
do not like to buy back options that in a matter of days or a couple of weeks recover. still would do these same trades again; have over 40 options contracts out, and when a sharp sell off happens you just do not know when will it stop.
the goal is to limit losses during a sharp sell off; at the time have to protect my portfolio in case the correction lasts longer than just a few days.
Last year (2005) in the account in which I made the trades in April returned 32%, hope history repeats it self.
thanks
selkirk
