I did see the question and I will respond to it. I am thinking I will probably create a brand new blog post and explain that concept pioneered by JV.

RJ

The main reason I was sure about OPTR going down was because the news was about ‘trial success’ and not the actual drug. They still have to go through few other stages before their drug is released, I think minimum of 1 year before they see any profit from their new drug. OPTR rose 100% of its regular price based on this news, which is typical because of the emotions involved. But once those emotions settle and people realize that they are paying too much premium for a ‘future drug’ which may or may not work. There has to be a sell off. Yes, what I didn’t consider was acquisition. If they were to be acquired by someone, then I would have been screwed.

Yng,

I am not sure if I agree with not getting married to a stock idea. I think it’s a good idea if you get married to a stock. That way you know how it behaves everday. How it behaves right at market open. How it behaves right before market close. And that’s where one can make money. As I blogged earlier, I like TRO’s idea of following only one stock. I am still finding that ‘ideal’ stock for me to play everyday.

And yes, Thank you Torello and Matty for your support.

Thanks,
RJ

That’s true, on that post I made I mentioned the strong probablility of these things falling…one thing I didn’t mention is my reticence to short pharmaceuticals anyway, since they can jump insane amounts just on news, and if you’re short overnight, you’re just screwed.

Yngvai is absolutely right. If a stock has meaningful news about drugs or money, it goes up. This is America after all.

I think it’s good you finally got out of OPTR. In my opinion, you don’t want to get married to a particular stock.

Also, what I’ve learned is that even if you think a stock is going to go down, it doesn’t mean it will. Really, after OPTR’s big initial drop on November 12th, it was a dead unpredictable play after that. There was nothing in the chart to make it an attractive play. At that point, it’s time to move on to something different.

Also, OPTR moved big on drug news. Big drug news is like an earnings play…they are less likely to come down. If OPTR had been a pump & dump or up on hype, then yes, it probably had more downside. But since it was up on legitimate, strong news, there probably wasn’t more downside after that first big drop day.