Tuesday, May 20, 2014

CLOSED: ACI Just a lump of coal

So here's one that didn't work out. ACI really looked like it had bottoming potential. This is a 2 year chart to show this range that I was hoping would be a bottom.

  I was very optimistic when it broker over 5 It hit about 5.40 (I sold the May 5.50 calls for .24, which was the one smart thing I did on this trade. Unfortunately, I added @4.25 hoping for a bounce... didn't happen and I stuck fast to my stop and closed it at 3.97.


So yea, I lost over $1.03 a share on this (minus dividends and premiums from the 5.50s)  Good riddance.  Would I be surprised if it bounced here?  Not really, but I'd rather honor my stop.

This trade was entered on the theory that coal couldn't get worse.  It did.  Less size might have let me stay in longer. But I think, It's best to realize that not every trade will be a winner and to take the loss.

No comments:

Post a Comment