Sunday, August 28, 2005

Additional Commments On Allied Trade

Just as a quick follow-up and to keep all comments within the framework I am looking to develop for analyzing most trades or investment themes on this sight. Allied is an example of a situation where I:

1) Anticipated an upward move in the stock price due to a positive earnings report to be released the following day.

2) An upward movement of approximately 10% occurred the following day and I think it is safe to say that it was due to a positive earnings report.

3) My investment results did not take advantage of the entirety of this move because I sold my options the following day before the entire move was completed.

So it is a good example of a situation where a certain reality was correctly predicted but the time element was not correctly taken into consideration and thus the full profit potential was not realized. Better luck next time. We will look at Pulte Homes Trade tonight and hopefully enjoy a follow up post regarding this falls' plans.

-BG

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