Lake and ESI- win and lose

The coiled spring broke and we exit our short with Lake where we have a nice W: (1:09pm Central Time update...if you came to this page later today, congrats, Lake kept dropping big, down almost 20%. However, I keep it real here and below is when I officially exited:

Lakeland Industries Inc. (LAKE)

 -NasdaqGM  Watchlist

18.42  2.27(10.97%) 12:32PM EDT - Nasdaq Real Time Price

Prev Close:	20.69
Open:	21.30
Bid:	18.64 x 500
Ask:	18.70 x 400
1y Target Est:	7.35
Beta:	-0.16
Next Earnings Date:	N/A

Day's Range:	18.36 - 22.38
52wk Range:	4.75 - 29.55
Volume:	3,172,123
Avg Vol (3m):	2,360,820
Market Cap:	98.74M
P/E (ttm):	N/A
EPS (ttm):	-0.65
Div & Yield:	N/A (N/

And with the ESI I diverted from what I usually do when I pick stocks and I got spanked hard:

7.00

ESI141018P00007000

0.05

1.64

N/A

0.05

157

589

Playing with options expiration is very risky when you are a day out. This is why I have 10-20 piles of money that I use, and I did inform yesterday that this is a gambling pick with a 50 50 shot of working. Read why its up sharply here

How did I do this one differently? I used price mechanics alone in my decision. Also:

1) I was unclear of why there was a sudden jump in price yesterday. They released some prelim's yesterday but that didn't warrant the price jump. That shows that there was a group of insiders who were in the know what was going to be announced today and they acted on it.

2) There was no normal run up with a stock that was going to announce that was for several days previous. Thats how I usually do it...by looking at the earnings calendar and finding a stock that has bad analysts expectations and then observe the stock climbing (crowd wrong) then purchasing a put or shorting it. Instead, the stock was falling and falling and then suddenly as in the above point, the day before there was a sudden jump. That shows insider trading. I should have stayed away from that.

As an aside, I think that there could be huge profits from piggy banking on insider trading if I can flesh out a system for that down the line. But we won't deal with that now. And I will not make a trade like this again. Unlike some people I know, I learn from my mistakes like an AI Neural Network.

More to come. Remember, 10-20 piles of money to absorb hits.

This weekend I am going to get all my picks together and see where I am at percentage wise, and then we are going to discuss my strategy. I will adjust as nessessary and then the machine will keep rolling on. Check back this weekend as I will also have an additional article on trading in my 10 part series.

Stay Loose and with seperate piles of money,

Mark