Yeah, I missed Amazon (AMZN). I’m sure you’re asking how? How could someone in the tech industry and having traded Amazon so many times in the past not be ready for this? Well, that’s a good question, but it really goes back to fear and dislike of earnings season.
I have this problem with earnings season. I always lose money and bet on the wrong horse. Those I hold long term always do better, but if I decide to buy anything within two (2) weeks of any earnings announcement I typically lose.
I have already lost on AMD (I have no idea why I tried) and P&G. I was not in the mood to be wrong again so I remained on the sidelines for Amazon. I almost (hovered over the submit button for an hour) purchased several Jan 950 Calls yesterday morning for nearly $15,000 (they’re not cheap), but ultimately took the safe route. What would they be worth today? Try $30,000…yeah 100% gain. Ahhhh!!!!
2017 YTD Risk Management
Let’s be honest, I’m up over 60% for the year. There was no reason to take the risk. I’m happy with where I am with my holdings and with the year. Why push my luck? (trying to justify my stupidity)
Because I knew this was coming. Everybody thought it would be last quarter and the jump failed to materialize (I lost on that one too). But I’ve known this entire year that Amazon was too hard to beat and one day it would pop. Last night was that night.
To anyone who was brave enough to hold through earnings congratulations. You deserve the massive gains this morning.