Second Trade

Thursday, I discovered that my brokerage had a mobile trading platform, so that I could keep track of my portfolio at work on my cell phone. Man, that totally helped my day, as I was checking it in between projects, or when I had a brief moment between conference calls.

Now Thursday saw a crazy day for the Nasdaq, as it started the day dropping, and it looked like everything was going into crisis mode. Unfortunately for me, I bought 2 call options on QQQQ, the Nasdaq index ETF, in the morning at $0.90 a contract and saw it drop all morning. By lunch time, I was very worried, but also saw a huge opportunity to lower my cost basis, as the contracts were down to $0.64. I purchased 3 call options at that price, which gave me an average cost basis of $0.80 a contract.

Now, I bought in because I believed Nasdaq will go up by next month, since I didn't think this subprime mess was more than just fearful investors betting on emotions. So come Friday morning, at about 8:10AM, and I was screaming for joy.

I had CNBC on, and they had just announced that the Fed had cut discount window rates by 50 basis points. This immediately caused stock market index futures to spike up across the board, and I knew my contracts were making a profit.

Although the Nadaq see-sawed through-out the day, it ended up, and with my contracts worth $1.13 each. That was easily a $150 profit off of about a $410 investment in a day!

I'm praying the Nikkei does well prior to the market opening, and that I can keep watching the profits roll in.