Originally Posted by BLOWRY1911
i wonder where bottom is.......
i could use a profit. any one looking to hope in soon? or waiting?
Pre-market I gobbled up as much as I could for 41.80-42.25. Then I had to go to work. Found time today to grab some January 2012 $50 calls @ 5.30 and 5.60. I think I have 20 of them now. I know that the calls themselves signify a significant holding, but it doesn't really feel like it - and apparently my limited knowledge of options didn't include the knowledge that it's not always easy to pick up options at a price point you like if the company isn't hugely popular like Apple. It's one of those "easier said than done" things when one goes "Ima buy some options", it seems.
Anyhow, that 25% drop in the stock price is ludicrous, in my opinion. I mean really, the company is supposedly worth 1/4 less because some DVD's they have to wait 2 weeks to put in their machines? Doesn't reconcile to me.
This reminds me an awful lot of last year when AMZN and NFLX took gigantic dives out of the blue based on "unexpected weakness", and then shot back up like a cannon when people got their fool heads back on straight (I seem to recall buying a bunch of AMZN @ $100 a share when it plummeted from $120 in one day, and then a load of NFLX when it dropped from 117 to 90 in a day - people said I was crazy back then, too. On a related note, haven't seen Ross here since I've gotten some free time and can post again).
I appreciate the sentiment of moving to streaming movies, but the reality is a very small subset of the population does it, and until companies like Comcast do away with their monthly bandwidth caps and the underlying infrastructure is improved throughout the country (not going to happen anytime soon), it will be a niche thing.
Nonetheless, I'm glad my ignorance about the difficulty of acquiring options essentially saved me from myself :P. Both 2 days ago when I released my position in the equity only to learn I couldn't buy options after hours and had to wait a day, and then again yesterday when I learned that just because I want to buy something, doesn't mean someone is willing to sell it to me.