Our FRIDAY focus was on $WFC & $BAC ... coming into this historic trading day we "owned" WFCOB the March 10 puts. ... selling FAZ Thursday and adding WFC puts turned out to be a blessing, but never thought we'd actually SELL those March 10s in-the-money!!??!
How often do the BIGGEST BANKS in the (short) HISTORY of The UNITED STATES of AMERICA trade down 30%+ ??! ... Bank of America hit $2.53!! Wells Fargo hit $8.81!! ... only to end the day down 3% and 9% respectively.
NATIONALIZATION + OPTIONS EXPIRATION = OPPORTUNITY!!!
EMOTION is the GREATEST. Many traders say to take emotion out of the game, but our faithful readers know we are obnoxious, intense, and best of all ... EMOTIONAL.
How did you "feel" with WFC down 15% hitting new lows??? The banking system is done. right? ... and then how about down 30%+ !!??? ... the world is really over, holy shit! ... still holding some WFCOB ... the words "I AM THE GREATEST!!!!" kept flashing across the insides of my eyeballs. When we "feeeeel" that good, it's a sure tell. TIME to SELL!!!!
SOLD OUT: WFCOB ... we took 1/2 off in the morning ($1.90) and the other 1/2 near HOD! ($3.10) ... basically taking profits with WFC down 15%ish and 30%ish ... using the common stock as our indicator. RECIPE for SUCCESS!
VOTE NO! ... with Friday being FEBRUARY OPTIONS EXPIRATION, we had to take final profits in our Exxon (XOM) *puts (XOMNO) , from XOM $80+ to $70.61 ... a sad day for one of our BEST trades of ohhh 9 ... original purchase .73cents , sold final leftovers north of $4. the new OIL short is $RIG above $60. *MARCH 55 PUTS*
WINNER: $BA is fatty. *short* from $44 ... consistency pays 20%+!! (stop hit @ $36)
EXPIRED WORTHLESS: MSFT the floating fatty. we couldn't sink billy. (not this month) ... the BIGGEST LOSER!!!
BUY OF THE DAY. (BOTD)
The MARCH $4 CALLS.
the BAC "calls of confidence" (part 4)
.... if the banks can rally Monday, resulting in some soft of laughable temporary "double-bottom" ... this could get real profitable, stay tuned.
BANK-of-NOTE: watch $C and the $2 level. friday it was a great indicator on the strength of the rally. (daily low of $1.61) After Hours: 2.20 +0.25 (12.82%) Feb 20 8:00pm ET
HOT RECO: *short* $AMP from $16.50 ... a "friend" of BOTD called friday to say, ... "there's trouble at Ameriprise Financial." (stock tips from random "friends" usually don't work, not sure why we think this one might be different)
p.s. Team BOTD knows.
71.8% of "us" got it right. hmm, who are the 28.2% non-believers?
Get SHORT, stay SHORT.