Yes, this is a no no, when we trade. But I broke this rule today. I added my AIG position today. I am at a point this is my max position size.
1st lot: 3.01
2nd lot: 3.87
3rd lot: 2.67
DONE!. The plan is to sit on these long term options with no time decay.
Why AIG, not anything else?
1)it is below $5.
2)Uncle Sam open his wallet already to bless this company.
3)Management tries to work things out.
Still AIG can go to zero. So position size appropriately.
Let me bring out another stock, NT. And here is the reason for me not entering into NT.
1) NT did not dropped like a rock from, it dies of chronic down trend.
2) No Gov't support.
3) Management is useless.
Just my 2 cents.
shorts: Tech, NT
longs: Gov't supported companies
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