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February 12th, 2014 at 2:49 pm
QCOM/Albo, StJ – BRCM still reasonable.
LNKD/Vedan – I like their business model but not at this valuation. We were not long on them, we had a long spread covering short calls for a while and that worked but we haven't liked them long for years but we also don't need another MoMo to short – especially not one where I actually like the overall business.
Obama saying "Give America a Raise" – $10.10 minimum wage. The attack on the GOP for November begins here…
Waves/Shadow – TV comes over the air?
CLF/Rookie – It doesn't change based on one data-point but I will be watching it more closely now.
HPQ/John – I'm just not a fan of tying up money owning a stock if they don't pay a good dividend. HPQ has earnings Friday and I love them long-term but you have $190,000 tied up in them and that makes me cry!
What are your hopes and dreams for HPQ? $40 by 2016? That would make you $64,000(ish) but so would the 70 of 2016 $25/35 bull call spread at $4.15, offset by 70 short $25 puts at $3.20 for net 0.95 on the $10 spread that's $4.60 in the money to start. That ties up just $6,650 in cash and about $20,000 in margin and the upside is $63,350 at just $35 and your break-even is $25.95, which is 14% lower than you bought it. All HPQ has to do is hold $30 and you get $35,000 back for an obscene 426% gain on cash and you STILL have $170,000 worth of buying power sitting around – in case a better opportunity presents itself.
PCLN/MrM – Have any of them hit?