[Jan 30: Short Geron]
[Feb 10: Closing Geron]
Original thesis for short as follows:
Geron (GERN) is an Obama hype stem cell stock; daytraders delight. The stock has been between $3 and $5 for the better part of the year but when Obama signed the stem call legislation daytraders rushed it. Once daytraders are done with it, I believe it shall collapse. This is "thesis" stock 101.
I'm shorting with a 3.5% stake in the $7.80s. The stock peaked today at $8.50, which is where it peaked Monday. I am going to give this one some room since it is volatile and full of people with a time frame of minutes - so I won't do a stop order right away but watch it. If it gets over $9, I'll probably sweat a bit...
My goal is that gap to fill in the $5.60s so I'm setting a limit order to cover at $5.80. That would be a tidy 25% gain from here.
A bit frustrating indeed; off by a week. I'm sure there is a lesson here somewhere; once I pull my head out of the wall I'll figure it out.
No position
2 comments:
Stay positive, and stick with your thesis. In this market, while timing is important, fundamental trades like these are stick working, the idiosyncrasies just seem to persist a bit longer. Thanks for all the good work, and just keep coming up with names for me to pick off :)
Can't beat yourself up over this. I bailed early on POT too. Who would have expected a market drop on Geithner's plan. For thet matter, what happened to our rebound today.
jegan
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