The Position Makers

to start this off, i thought i’d mention the major downgrade of ETFC this morning. at the time i’d been long 200 shares w/ an average price of $5.20. Not being a big player, I was faced with two options:

1. Hold regardless of downgrade and see what happens (could also keep accumulating on the chance that Etrade does pull through)
2. Sell and look for a bottom to re-enter a position

well, i chose option 2 and reinfoced that position with $3 puts for July ‘08. honestly, i’m just looking for a bit of downside, so i can make a quick $$ on etfc’s poor market position. i’d think at $3 per share, we’d be looking at etfc as a buyout option and the price would bounce from there. E-Waterhouse, anyone?

i’ll post on ETFC from time to time. feel free to leave comments on your reaction to the downgrade.

that all being said, i’m highly skeptical of the markets in general advancing. economic conditions are certainly not improving at all, so even when berknanke & the fed-board lowers the interest rate, it’s going to be a long, hard battle for companies to maintain recent years’ profitability.

here’s a much more eloquent breakdown of what i’m thinking. it even comes equipped w/ #’s!