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Trading Diary #2 (LULU) got crashed

LULU reported 1.00 EPS, WS expected 1.01 EPS. A slight miss.

But the AH chart looks like an end of the world. Blame guidance which made WS over-reacting (as usual).

 
LULU
 

This is a bad blow to my account. Hope, this shit will recover by tomorrow morning opening although I have very low expectations that it would happen. I think this crap will continue lower. But who knows.

Last Q earnings the company beat expectations and it skyrocketed back to 72 a share. This earnings a slight miss and it swamped. What a joke.

But I should have dumped my shares when it jumped up above $70 a share and not holding the stock! Stupid me!

Because surprisingly, it is not the options in my account which are hurting me now. It is the f** stock!

 
LULU
 

As you can see, even my puts are still making me money! It is the stock which is now down by almost $2,000 dollars which blew my account now. Another reason for not trading high flying non-dividend stocks. If this happens to a dividend stock, you will at least get paid for holding the stock. With LULU, I get nothing.

Tomorrow will be a bad day!





2 responses to “Trading Diary #2 (LULU) got crashed”

  1. Wow, that hurts. Kudos to you for posting not just the good trades but fessing up to the bad ones, too. Stories like this one convinced me to do my short-vol trading entirely on index futures. At the individual stock level so much can go wrong.

    Also: Maybe I’m reading your table wrong, because there are no headers describing what column is what. But why is Put with strike 75 valued at 13.20 when the underlying is 54.68? The intrinsic value is already above 20 and the time value can’t be negative.

    • Martin says:

      Good question. Could be that the platform is not taking into account the AH stock price. At first I though it could be due to volatility which will crash tomorrow and re-price the options properly but that doesn’t make sense either. Well, I will see more blood tomorrow I guess.

      The 13.20 is the market price and 14.62 purchase price in that table.
      Thanks for stopping by…

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