Since I have a quick gain in a slow moving stock I am going to take half the short position off in Texas Instruments (TXN) with a 2.5% gain. In absolute terms that is not a huge gain but this is not a 'fast money' stock so 2.5% on TXN is like 10% on Baidu for example. My ultimate goal as a hedge was $23.25ish, and already in less than a day it's at $23.33 so 8 cents away - there could be more downside, but it would need to break to new (recent) lows to penetrate $23. I was fortunate with a news event so I am going to capitalize with at least part of the position.... since the stock is not very volatile I went with a larger position than normal of 3.4% exposure... I'll be down to 1.75% post sale. Strategy from here is to sell the rest if the market finally relents and gives us a down day, taking TXN along with it.... OR reshort the half I just let go on any bounce closer to resistance near $24. The chart remains poor. But for now, I'm satisfied with the quick scalp since none of my long positions are doing a darn thing today.
Short Texas Instruments in fund; no personal position
Friday, September 10, 2010
Bookkeeping: Covering Half of Texas Instruments (TXN)
Posted by
Mark
at
12:34 PM
Bookkeeping: Covering Half of Texas Instruments (TXN)
2010-09-10T12:34:00-04:00
Mark
shorts|
| Edit This Post |
Create A New Post
Labels: shorts
Bookkeeping: Covering Half of Texas Instruments (TXN)
2010-09-10T12:34:00-04:00
Mark
shorts|
Best Of FMMF
- Blogroll
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows
