Blood on the Carpet

Its been an exciting few days. There is blood on the carpet for two reasons. Firstly, because my favourite energyy company has just had its results out and whilst they weren't bad, the market didn't like them and they are now trading at 414. If the management doesn't do something, there will be blood on the carpet for some of them I feel.

This is tantalisingly close to my breakeven point as the puts are now quoted at 7-11. That means I could sell them at 7p realising a 9p loss or hold onto them in the hope that they will fall further

On friday, the broker called me saying someone was bidding 10p for them as they needed to cover a position. As I was at the hospital at the time and not really thinking straight. I was tempted to try and sell half the position but in the end I demurred hoping for some more bad news.

In these situations, it is really a toss up whether you make money or not. The share could go either way on good or bad news and it is a bit too random for me. With hindsight I should have got rid of them and just taken a 6p loss (i.e 6*10*Number of contracts = A small family car) but the share doesn't seem to have much support and I am hopeful of another few pennies more.

The problem lies in the fact I have little time left. The contract expires in less than 5 weeks time and the time value expires rapidly in the last 6 weeks of a contract's life.

So should I sell them at whatever price or should I hold on and wait. Post a comment to let me know what you think.

Oh yes, blood on the carpet reason 2. I have had an operation on a deviated septum (a nose joint) it was broken and straightened by the doctor on monday and he removed a polyp too. Definitely a lot of blood on the carpet!!