Monday, August 24, 2015

Twitter Update #14 (Stock Sale)

Aug 24

Analysis

The market opened down 800pts! This is after the 500pt drop on Friday. This is should be close to capitulation selling as the futures opened limit down and many stocks went on short sale restrictions.

Unfortunately, I had to liquidate 23 shares of the TWTR to maintain balance in the account. I had been a little to aggressive with the stock purchases and need some more of a cash cushion. I now am back to two round lots of TWTR and will rebuild the share position from here.

I am still long the hedges with TWTR trading right at the short strike of the butterfly. Expiration is this week. I will be holding the hedges until then to try and improve the cash balance in the account.

The severity of the move today starting picking up margin accounts forcing sales at the worst possible prices. On Friday TWTR hardly moved at all, but with today across the board selling it dropped to new lows.

The VIX spiked to a high 58.

Trades

-23shrs TWTR @ 21.72

-End