Trying to Find A bottom??????

Trying to find a bottom can be like trying to catch a falling knife. that is the way my weekend trade worked out. I bought 1 Rimm Jan 08 $80 call for $7.70. I was sure the stock would see a bounce trading at $71 dollars a share but O' how wrong I was. The market fell another -777 points and rimm fell to $61 dollars a share. I know when it was time to go so I sold with a stoke price at $64 and a call price $6.20 so with commissions and all I am down about $180. this just adds to the point iv been making all along if I am going to have a open market position it has to be hedged. I'm done with picking directions. My move for this market is a straddle or a strangle.Also don't trade against the trend if the market is going down go short or buy puts with some small call insurance. I just entered a APPL straddle trade so I will update tonight.

Buy Signs

Green to Red means when the stock is positive (the price is higher than yesterdays close)...and goes Red (meaning the price is now lower than yesterdays close). When the stock move from Green To Red, or positive to negative, selling pressure usually accelerates. The same goes for Red to Green. If the stock is negative and then goes positive, it could signal a buy.

What a day in the market!!!!

Up $285 on the month or 5.7% Reducing my all time losses to -$4327

They say if you don't learn from your mistakes you are destined to repeat them. That is what my trades look like in one of the wildest rides the market has seen in 7 years.I watched the Dow swing 1100 pts in a 24 hour period and the SEC ban short selling until OCT 1st due to the sellers trying to knock the bottom out of the market.
My trades, My trades,My trades. Well this was my plan, when I entered the RIMM position I held half my account in cash so if the stock went against me I could buy in at the lower price. I am so sure the stock is a buy that is a sound plan. Well I jumped the gun when the stock went up 10% then back to my same entry point. So this is what I bought.

Account Number: xxxx-8709 - William G Ripley and Danijela Obradovic [JTWROS]
Order Number: 59764393
Symbol: .RULLS
Description: RIMM DEC 95 Call
Stock: RIMM at 100.15
Action: Bought To Open
Quantity: 1 contract(s)
Price: $16.45
Commission: $14.95
Reg Fees: $0.00
Net Amt: $1,659.95

Which I then sold for a loss $109.00

Account Number: xxxx-8709 - William G Ripley and Danijela Obradovic [JTWROS]
Order Number: 60047804
Symbol: .RULLS
Description: RIMM DEC 95 Call
Stock: RIMM at 98.18
Action: Sold To Close
Quantity: 1 contract(s)
Price: $15.75
Commission: $14.95
Reg Fees: $0.01
Net Amt: $1,560.04

So at this point I was just glad to be out of the trade considering I was down interday around $550 So once I sold this my outlook on the market had changed so i figured I better close all positions and stick to cash.
I sold the original position for a gain of $410

Account Number: xxxx-8709 - William G Ripley and Danijela Obradovic [JTWROS]
Order Number: 60100910
Symbol: .RFYLX
Description: RIMM DEC 85 Call
Stock: RIMM at 104.87
Action: Sold To Close
Quantity: 1 contract(s)
Price: $26.00
Commission: $14.95
Reg Fees: $0.02
Net Amt: $2,585.03

You can tell from the candlestick chart when you buy at $100 $89 does not look so good. The lesson learned is stick to a plan and always protect the down side.

RIMM & V

Today was a big day with the Fed's taking control of Fanni and Freddie. The market is up almost 500 pts from its interday low. I have had my eye on Rimm they have got caught up if fear selling in the market.This is the position I entered

Account Number: xxxx-8709 - William G Ripley and Danijela Obradovic [JTWROS]
Order Number: 59438915
Symbol: .RFYLX
Description: RIMM DEC 85 Call
Stock: RIMM at 100.08
Action: Bought To Open
Quantity: 1 contract(s)
Price: $21.90
Commission: $14.95
Reg Fees: $0.00
Net Amt: $2,204.95

This option has a delta of .71 meaning when the stock moves a dollar I make .71 so I like it.

The mistake I made on this trade was I bought it in the morning and I have been wanting to keep my trades more toward later in the day. The second mistake I made was I did not heade this position with anything from the down downside. So next time I may want to buy a put.

Visa is on my mind but I will cover it in my next post.