Today's trades, thoughts, ideas

Welcome to my blog. This blog will contain ideas on the markets, what I invest in, and why.

Yesterday was a active day for me. I made 4 trades throughout the day. I bought some 25 shares of YGE, a Chinese solar company, at 13.50 per share. This gives me 100, and I have a option strategy that I plan to put into action if I can purchase the options at a good price. I will map out this plan when i have done it. I sold two covered call options for 07 DEC @ 12.50 on SVNT for 3.60 apiece, netting $720. SVNT is a biotech company, and is currently in phase III of a gout drug. This gives me more cash up front to buy stock or options with. I'm currently not sure if I should have sold 2 options on that. I think I may buy one back if the share price approaches 11-12 per share. Regardless I used the money to purchase 100 shares of EMC at 19.30 per share. I feel EMC is undervalued given the spinoff of VMW (currently own 90% of VMWare), and since they sold the 10% are sitting on a huge pile of cash that they can use to buyback stock or aquire someone. I anticipate a buyback of stock, enhancing shareholder value. It expect a result similar to CY when they spun off SPWR. Yes, I'm using Cramer's idea, but I used to own EMC and I think things have turned the corner for them.

My last trade was LMT. I saw the market decreasing, and realizing I have a flight reservation payment, a rate lock for mortgage payment and my monthly bills...I sold LMT. I think LMT could have ran up longer, but I wanted to preserve some liquidity in case the market drops like it did two weeks ago. At that time I had no money to buy low.

My options strategy is going well, only two days young. I could sell my TSL call I bought on monday for 7.60 / contract today for 8.50/ contract. That's a 12 percent or so gain in 2 days. I expect TSL to approach 60 by next March and I can net a 100 percent gain though. I think TSL and YGE are the most undervalued solar companies, and I expect the solar industry to continue rising similar to tech in 99-01. When we start seeing splits, we start selling.

That's all for now. These were my thoughts from yesterday, Aug 28, 2007.