JCP options...JCP reported a decrease in same store sales of 2.4% for the last 5 weeks due to unfavorable weather and housing conditions. Premarket trading is now 64 a share vs. 68 close yesterday. They also lowered 3q eps, but gave a positive outlook for holiday season shopping.
I expect them to hit a yearly low from this, down in the 60-61 range...if it hits 61, which would probably be tomorrow or monday, I'm pulling the trigger on an option for MAR 08. I am unsure of strike price yet, but it has had much resistance in the lower 60's so unless it breaks through resistance I see it bouncing up fairly quickly.
Thursday, October 11, 2007
Tuesday, October 9, 2007
5 trades today
Bulls and bears both make money, pigs get slaughtered... today I was a bull and took much off the table. I opened two positions and closed three today, netting roughly $500. Let's recap the trades in order.
I opened the day by setting a limit for AAJU, oct 37.50 option for Alcoa at 1.90 a contract. This was coincidentally the low in the day. I put a sell in at 2.40...which it blew past to close at 2.80. Alcoa proceeded to miss earnings, so I'm glad I was able to pull in about $85 on 385 investment.
I opened a position today in BBW, OCT 17.50 BBWJW, at 1.40 a contract. The stock continued to drop at the end of the day, and I've lost about .30 a contract probably on them. This stock is heavily shorted, and I expect many shorts to cover prior to earnings report. They report next thursday, and I hope to drop two of them before earnings and play with the house's money on the last option.
I sold my EMC shares. Although I didn't want to do this as I believe EMC will continue to rise due to its stake in VMW, I need the money for the downpayment on the house and I still own a DITM call for march on EMC, EMCDC, which is up nearly 40 percent.
I also sold my AUY shares at close. I had a sell in for AUY at 12.25, but changed it to 12.15 at 3.59 pm. The sell hit and I netted nearly $180. I didn't want to sell this either, but again need funds for the house payment.
Watch for PEP reporting thur and GE reporting friday. I'm going to research options for these and offer insight into their earnings tomorrow.
I opened the day by setting a limit for AAJU, oct 37.50 option for Alcoa at 1.90 a contract. This was coincidentally the low in the day. I put a sell in at 2.40...which it blew past to close at 2.80. Alcoa proceeded to miss earnings, so I'm glad I was able to pull in about $85 on 385 investment.
I opened a position today in BBW, OCT 17.50 BBWJW, at 1.40 a contract. The stock continued to drop at the end of the day, and I've lost about .30 a contract probably on them. This stock is heavily shorted, and I expect many shorts to cover prior to earnings report. They report next thursday, and I hope to drop two of them before earnings and play with the house's money on the last option.
I sold my EMC shares. Although I didn't want to do this as I believe EMC will continue to rise due to its stake in VMW, I need the money for the downpayment on the house and I still own a DITM call for march on EMC, EMCDC, which is up nearly 40 percent.
I also sold my AUY shares at close. I had a sell in for AUY at 12.25, but changed it to 12.15 at 3.59 pm. The sell hit and I netted nearly $180. I didn't want to sell this either, but again need funds for the house payment.
Watch for PEP reporting thur and GE reporting friday. I'm going to research options for these and offer insight into their earnings tomorrow.
AA options...
I purchased two AAJU, Alcoa options before earnings today. Alcoa usually runs up prior to earnings, and I expect today to be no different. I payed a pretty high premium, but currently the low of the day. If FED minutes are bad I will sell. If the contract reaches 2.40 today (I bought mine at 1.90, this would be roughly a 25% gain for the day) I will sell. If neither of these two occur I plan to sell one option prior to closing and keep the other one through earnings.
I still have my five INTC options, and they are now priced around 1.02 per contract. This is pretty far down from where I purchased, but I'm not too worried. These options have been bouncing around and barring any horrendous news I only expect earnings to really move them. Let's see if it gets a run up prior to earnings...I believe they are next tuesday.
GRMN has taken off!!! I'm disappointed I didn't get another 10 shares...I had a limit order in at 94.50 last week but it only grazed upper 95's. Today GRMN is at 110. I'm also selling my EMC shares today so I can have sufficient money for downpayment on house. I'll sell for 21.50 or better, a 10% gain in a little less than a month. Remember I still have my may option, EMCDC, which I purchased for 5.00 a contract, now currently 7.00 a contract (40 % gain).
and last of all...go Alcoa.
I still have my five INTC options, and they are now priced around 1.02 per contract. This is pretty far down from where I purchased, but I'm not too worried. These options have been bouncing around and barring any horrendous news I only expect earnings to really move them. Let's see if it gets a run up prior to earnings...I believe they are next tuesday.
GRMN has taken off!!! I'm disappointed I didn't get another 10 shares...I had a limit order in at 94.50 last week but it only grazed upper 95's. Today GRMN is at 110. I'm also selling my EMC shares today so I can have sufficient money for downpayment on house. I'll sell for 21.50 or better, a 10% gain in a little less than a month. Remember I still have my may option, EMCDC, which I purchased for 5.00 a contract, now currently 7.00 a contract (40 % gain).
and last of all...go Alcoa.
Friday, October 5, 2007
listen to yourself
Don't hesitate, listen to yourself... scroll down to Sept. 17. I wanted to buy RIMM because I thought their earnings would be well. At the time RIMM was trading at around 88 dollars a share. I was looking at OCT 07 calls, at a strike price of 85 or 90. On this date calls for RIMM were going for 8.00 and 5.00, respectively. Today the same two calls are going for 27.50 and 23, after RIMM beat earnings again.
Start going on your instincts...listen to yourself. I missed out on a great return.
Start going on your instincts...listen to yourself. I missed out on a great return.
Roth changes, CRDN a buy
I have a new idea to changes in my Roth that I may implement in paper trades for awhile...and if it's successful implement into the Roth. DITM calls, just one per stock, for some high growth stocks. I'm talking about stocks like GRMN, GOOG, ACH, CEO...any stock within the high growth category. DITM will allow us to pay less of a premium for the stock and capture all the movement...allowing us to control 100 shares of stock at a much lower price. The reason I want to implement it in ROTH is because this is money I have put away that I do not intend to take out or need until I'm 60. I am now 23, so I have 37 years to recoup serious losses and when you are young is the time to be the most aggressive.
My Roth currently consists of USCGX, a large cap growth fund which year to date has performed well, and USSCX, a science and tech fund. I was considering dropping USSCX, giving me 4400 for the strategy. I want to buy two DITM calls for at least may 08 if not jan 09. With the remaining money I want a bank with a high dividend and moderate growth to baseline the portfolio. I think this combination will yield a better return than what I currently expect out of USSCX.
One of these calls may be CRDN. Watch out, CRDN is en fuego again. I owned this long ago at around 55...then sold it at 60. From there I watched it go to 83 then drop back down into the 70's. I grabbed 10 shares at 67 a few weeks back, expecting it to retreat more. CRDN does many things, but the biggest reason for my investment is their growth, particularly in the MRAP (Mine Resistant Ambush Protectant) II vehicles they are producing. These are uparmored vehicles that are used to help soldiers combat terrorism and are the biggest protectant against IED's. Now phase 1 of all MRAP I's is over, and CRDN received 0 contracts for MRAP I and bowed out of the race early to concentrate on MRAP II. Now CRDN has teamed up with Ideal Innovations and OSK, which I also own 40 shares of, in MRAP II...and has sent 2 vehicles to Aberdeen Proving Grounds. I have raised my reentry point for CRDN from 73 to 75...and I easily see CRDN breaking par by the end of the year. I would seriously consider a DITM for CRDN, but have yet to research which companies I want in my Roth revamp.
My Roth currently consists of USCGX, a large cap growth fund which year to date has performed well, and USSCX, a science and tech fund. I was considering dropping USSCX, giving me 4400 for the strategy. I want to buy two DITM calls for at least may 08 if not jan 09. With the remaining money I want a bank with a high dividend and moderate growth to baseline the portfolio. I think this combination will yield a better return than what I currently expect out of USSCX.
One of these calls may be CRDN. Watch out, CRDN is en fuego again. I owned this long ago at around 55...then sold it at 60. From there I watched it go to 83 then drop back down into the 70's. I grabbed 10 shares at 67 a few weeks back, expecting it to retreat more. CRDN does many things, but the biggest reason for my investment is their growth, particularly in the MRAP (Mine Resistant Ambush Protectant) II vehicles they are producing. These are uparmored vehicles that are used to help soldiers combat terrorism and are the biggest protectant against IED's. Now phase 1 of all MRAP I's is over, and CRDN received 0 contracts for MRAP I and bowed out of the race early to concentrate on MRAP II. Now CRDN has teamed up with Ideal Innovations and OSK, which I also own 40 shares of, in MRAP II...and has sent 2 vehicles to Aberdeen Proving Grounds. I have raised my reentry point for CRDN from 73 to 75...and I easily see CRDN breaking par by the end of the year. I would seriously consider a DITM for CRDN, but have yet to research which companies I want in my Roth revamp.
Wednesday, October 3, 2007
New portfolio
I'm looking at several stocks and options in a huge change of portfolio. Since I've been gone I have been disconnected and watched all stocks that I had hoped to buy on a pullback accelerate forward.
Optioins I'm now looking into before earnings and coincidentally before options expiry are BBW, INTC, DNA. I currently moved into a position of 5 contracts of INTC this morning for 1.15 a contract. If I can sell it today for 1.65 that is $250 profit for the day. I may keep 2 of these as I expect it to still run up prior to earnings. DNA I think is undervalued as a big pharma, and is partly owned by Roche Holdings, the company my wife works for. BBW is Build-a-bear workshop, and there is a high short float on the stock now. I'm looking to buy the ITM calls for BBW for oct, probably at 17.50 strike price.
As far as other companies I'm looking at long for options, JCP and TMA look like they should be bottoming out. I'm also going to switch from stock to options on AUY, SIRI, RAD, LVLT.
As for stock aquisitions, I just purchased GRMN (20 shares), and will buy more if it continues downward. I'm also looking at increasing my hold in CRDN if it gets to 73, I like KO or PEP at 54 or 70, and want to be in BAC at 50. I like BAC because of high dividend and I think their investment in CFC will be huge.
Yuan He is right on the money with all the Chinese stocks...I made a lot of money off of them but was hesitant on how high they would go and sold it all. He had the guts to stick them out and he made 33 percent last quarter, that is an awesome job. CEO looks good at 155 or so and ACH at around 65.
Also on screwups...my TSL call I had would now be worth about$2400...which I sold mine for $1200.
Optioins I'm now looking into before earnings and coincidentally before options expiry are BBW, INTC, DNA. I currently moved into a position of 5 contracts of INTC this morning for 1.15 a contract. If I can sell it today for 1.65 that is $250 profit for the day. I may keep 2 of these as I expect it to still run up prior to earnings. DNA I think is undervalued as a big pharma, and is partly owned by Roche Holdings, the company my wife works for. BBW is Build-a-bear workshop, and there is a high short float on the stock now. I'm looking to buy the ITM calls for BBW for oct, probably at 17.50 strike price.
As far as other companies I'm looking at long for options, JCP and TMA look like they should be bottoming out. I'm also going to switch from stock to options on AUY, SIRI, RAD, LVLT.
As for stock aquisitions, I just purchased GRMN (20 shares), and will buy more if it continues downward. I'm also looking at increasing my hold in CRDN if it gets to 73, I like KO or PEP at 54 or 70, and want to be in BAC at 50. I like BAC because of high dividend and I think their investment in CFC will be huge.
Yuan He is right on the money with all the Chinese stocks...I made a lot of money off of them but was hesitant on how high they would go and sold it all. He had the guts to stick them out and he made 33 percent last quarter, that is an awesome job. CEO looks good at 155 or so and ACH at around 65.
Also on screwups...my TSL call I had would now be worth about$2400...which I sold mine for $1200.
Tuesday, October 2, 2007
buying GRMN
Since my wedding I have been fairly disconnected from the stock market. I would get on after the market closed since Hawaii is 6 hours behind EST. Therefore, the market is open between 3:30 am and 10 am here. Anyways, I have no clue what's been going on in the market, and all the stocks I was looking to buy on a pull back have accelerated forward. I'm really in a bad position as I do not know what to put my money on...much research must be done once I get back home.
Yesterday I saw GRMN down on news that Nokia was buying Navteq, a key supplier of maps to GRMN. I think many anticipated GRMN to buyout NVT. I bought 20 shares of GRMN today at an average share price of 104. I think GRMN is a good long term investment as they are the leader of the GPS industry, and I don't think this will effect the outcome of this company. I had looked into options on them and they are fairly overpriced.
As I am closing on my house soon, I'm looking to free up more cash for the downpayment. Therefore, I'm looking to get SIRI options and sell the stock, and selling EMC stock as I have one option.
As for trades, I bought back a covered call and lost 140...and I sold OSK stock and OSK options and made about 180. That's it for now...one thing to look at long is JCP options.
Yesterday I saw GRMN down on news that Nokia was buying Navteq, a key supplier of maps to GRMN. I think many anticipated GRMN to buyout NVT. I bought 20 shares of GRMN today at an average share price of 104. I think GRMN is a good long term investment as they are the leader of the GPS industry, and I don't think this will effect the outcome of this company. I had looked into options on them and they are fairly overpriced.
As I am closing on my house soon, I'm looking to free up more cash for the downpayment. Therefore, I'm looking to get SIRI options and sell the stock, and selling EMC stock as I have one option.
As for trades, I bought back a covered call and lost 140...and I sold OSK stock and OSK options and made about 180. That's it for now...one thing to look at long is JCP options.
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