Qihu sold

Guess my stop limit order was a bit too low. Executed this morning.



17% Return at the end.


Talked to a friend’s friend in China last night and he didn’t even know what Qihoo is. Not a good sign. Placed a Stop Limit order for it about 3% from where it is now. Now thinking 3% is not a leeway.

Financial: Sold my FB 20 Jan 2014 option

Sold my FB 20 Jan 2014 option for 8.75 on 4/11. Considering I bought it for 7 that’s a nice ~23% gain in about 3 weeks.

Reasons for sale:

  • Short term trade
  • gain was too quick for the time frame + fb phone helped pushed it higher
  • first option trade and wanted to lock in gain
  • little confidence in the market

It’s pretty crazy how volatile FB is and how big the swings are on FB. Might get back in it if it drops back down.

IRA Rollover and Recharactization

If you are doing an Roth IRA conversion, where you are taking money from a traditional or rollover IRA to a Roth IRA, heed this advice. Open a new Roth account and then rollover the stocks. This will save you a bunch of headache in case you need to do a recharactization (undo the rollover by moving the Roth IRA back to traditional or rollover IRA).

Using a new Roth IRA when recharacterizing makes the conversion easier because then you don’t have to worry about any calculations like calculating the earnings.

Stock: Facebook (fb) option

Been thinking of buying FB stock and learn how to trade options intelligently.  This is the first option I’ve ever bought. A co worker seems like he’s experienced at option trading so I’ve asked him for some guidance.  He recently bought some so I followed suit at a better price than him.

Bought Jan 14 $20 call option priced at $7.  So I need FB to be above $27 sometime before Jan 14 to make money.  Seems like a reasonable bet.Basically need FB to be up 5% by the end of the year.  Hopefully it’ll be OK.

A bit interested why he bought that call price as opposed to a higher call price.