Close AMZN puts, Portfolio update
By stlplace on Feb 9, 2008 in Stocks, Portfolio
I closed the Amazon Feb $65 puts last Wed, when I saw the stock dropped to around $68, which is the low point the day after it released Q4 earning.
Lesson learned:
1) short/put a stock is much harder than I thought. I started this trade because I saw EDU, AAPL, and VMW all dropped big after missing earning. But I have hind-sight bias on them: things are always clearer on rear view mirror. I did not know EDU will issue a so-so guidance for this Q; I did not know iPod suddenly stopped growth, iPhone did not sell as fast as Steve wanted, and Mac computers are expensive considering consumer slow down.
2) Back to Amazon, although it face some head winds such as shipping cost, its fundamental is solid. It is enjoying the tail wind in the online shopping boom; and the cloud computing is an interesting growth (top line and profit margin) driver.
Portfolio update
I still have Crocs and Mindray: thinking about selling some Crocs around earning (Feb 19/20). Crocs is getting sued again, this time for the escalator accident. I am not that worried about Mindray.
I bought some CHL in mid Jan, and added some more this past week. I also started a small position on RIMM this week.
