Friday, July 25, 2008

Sell or Hold?

It's been an emotionally intense week. After last week, when BMO continued to drop and I was worried about whether I'd recover any of the $320 I'd spent on August 48 calls, the stock shot up. Too fast, I would say. By the end of Wednesday, I was almost a full dollar into the money, and my calls were worth around $2500. But I had this target...I expect a peak next Friday, so I held off on selling them.

I'm still deliberating on whether or not that was a mistake. Thursday saw all of Wednesday's gains wiped out, dropping my calls by half their value. Today has been very up and down, the value of BMO has been sidelining, occasionally going down slightly, but generally hovering between $47.50 and $47.80. I have a history of holding onto stocks that have had good gains, only to see all those gains wiped out, ending in a loss. On the other hand, I sold my last option bet for a small ($400) profit, only to see them worth thousands more a week later.

So I'm really torn. I'm still telling myself that next Friday is the day. And if I've still got them, I'll definitely sell them then for whatever I can get. But getting that far without pulling my hair out will be a challenge.

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