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When a average falls my plan dictates to exit if the stock breaks a major resistance point, selling the stock and getting back the greatly reduced call. On core holdings, I have long-dated puts on in order to protect on the downside, liked working out let the puts do their work and reenter at a later day as the stock actually starts to rebound.
Some major movers in yesterdays trading session include Intuitive Surgical (NASDAQ: ISRG) which was knocked down from $116.35 to $107.70 on Tuesday but regained those loses to trade up $4.95 to close at $113.01 on Mondy. This is the exact explanation why it important that you seek out companies that happen to be being dragged down along with market , those firms that have not changed insurance provider.
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Diamond Offshore Drilling (NYSE: DO) traded down $4.09 to close at $78.16. Now nothing dramatic has happened that's not a problem stock, the being dragged down by market conditions just like Veritas. Now the stock broke the $79.23 mark and could slip to high $75 to the lower $76 range, but you might want to keep an eye on the trading on this as perhaps it will drop to your mid $77 range and pop back up. Now keep in mind that the stock traded as high as $95.65 in May 2006, therefore the potential can be there. Keep this one on your private stock stream.
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Other stocks under ten bucks that made nice moves yesterday include Nitromed (NASDAQ: NTMD) which traded up 40 cents to close at $4.64, Cardica (NASDAQ: CRDC) traded up 37 cents to seal at $7.26, DUSA Pharmaceuticals (NASDAQ: DUSA) traded up 36 cents to close at $4.90 and Lattice Semiconductor (NASDAQ: LSCC) which traded up 32 cents to close at $6.05.
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