TKMR and the imporatance of timing and taking the money

Good Evening. Tonight I would like to discuss with you what happened today with TKMR. Last night people started to come to thier senses and realized that TKMR had nothing ready for Ebola in the immediate future. The sell orders started to pile up after the market closed yesterday and this morning they were executed. Which is where I came in as the stock was dropping in the morning during trading and I took my money and got out :

As the day progressed on, the talk about Ebola and the patient in Texas started to gain momentum again on the news networks again spooking investors and the started to re pile on the stock brainlessly. Still, this stock has no treatments for the near to mid future for Ebola. The government awarded chimera funds for rapid development: this sector association simply spurred more incorrect buying of TKMR. The option price for my contract that I was in, the Oct. 25s, also swung around wildly:

If you missed the move, I would just watch TKMR, as the news fades off and the Ebola thing is contained, the stock will sell off over the next few days.
I got out and announced to get out this morning on my site: I exited this morning at 3.00 for the above option. You can see that the contracts range for the day was 1.95- 3.50.

Some people would have stayed in. I knew that this stock would fall, I just wasn't sure to what extent or how long the Ebola scare would continue or if it would re-spook investors. So when I looked at the stock market first thing this morning and saw money lying on the table I went ahead and grabbed it and exited my position. 21% overnight gain is a 21% overnight gain.
What people have to understand is options are pure speculation and change minute by minute. It is basically a bet that the stock will be at a certain price by a certain date. And as the stock moves around inter-day the speculation keeps revising itself...when the stock suddenly surges for whatever reason, speculation that the stock will really go up and will have time to do so definitely by that certain date rises quickly and that's why option prices bounce around and can exponentially climb or drop. You have to be on it. Like ON IT. Sleep you lose. Again, I would still expect this stock to drift down over the course of a week especially if the attention on Ebola goes away as the outbreak in texas is contained.

I just want to thank you for visiting my site and I hope that together we can make a lot of money. At first, I would recommend that you just follow my pics and trading activities: Its my intention to make you a better trader by learning how to trade contrarian style against the crowd. If you would like further information on trading contrarian, I have a few videos in the sandbox on my site where you can see how I trade and what works and what does not work in the stock market. Also stay tuned to my continueing 10 part series on how to trade the stock market.

More pics and information on trading contrarian style to come,

Mark