Ariad Pharmaceuticals Inc fka ARIA

[Whosetosay]

Like others I maintain a core ARIA position and DITM calls. I do not trade the the core and try not to trade the DITM calls, except for rolling them over.

Everything over my core is margin financed, and options occupy margin and unlike stock on margin, are not also marginable themselves (i.e you can get margin on margin shares, but not options).


With my remaining margin, I day or multi-day trade ARIA, and currently also PCYC and VXX, always long the position (VXX is a hedge). If I buy a position that goes under-water, I hold it provided my margin can hold up, as any ARIA price decrease reduce both my day shares , and more importantly, my available margin. I hold the under water shares unless forced to sell (as was the case a few times last year). Why ? ARIA and PCYC, eventually go up. Usually no need to to take a loss, unless you go crazy and buy too much on margin. 70% of my trades are day trades, the other 30% alast no longer than a week or so.

Once you get in rhythm with the price fluctuations, which is a a must, i.e. buying low, selling high, you can do well. This year is much better than last.

If you fall out of rhythm, wait for a dip then get back in.