Market Curiosity: Exploring Markets And Systems

January 19, 2011

Sold CXW calls: Will states pay for pot smokers to be jailed? -36%

Filed under: -25 to -49%, Mistakes, Short Calls — Tags: — Jeff Fitzmyers @ 10:32 am

I have read the US has more people in jail than any other nation and that each inmate costs about $20,000 per year. Apparently about 12% of them are for pot. I wonder how much people will care to continue with that??

Sold Feb 25 calls for $0.70. I did not sell short the shares since this is really not the environment to do so. But since upside seems limited selling calls should work out over the long term.

– 1.24 billion in debt, 34 million in cash.
– Both institutions and insiders are selling shares.
– Monthly, weekly, and daily CCI’s are heading down.
– Below 34 EMA.
– 6 distribution days since December.
+ In a wedge, but speculate price will drop out instead of rise up.

Jan 19th: This is turing into a mistake. If things don’t quickly reverse today, it’s time to keep a small mistake from becoming a big mistake.

Was looking for a drop like this:

Jan 19th: Covered the calls for $1.10 -36% I guess I should have waited a bit more. I am okay with this trade: I cut a potential loss short. One of the worst things to do is let a small loss become a big loss. I did manage to get out near the high though šŸ˜‰ Now back to watch and wait mode.

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