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April 23rd, 2014 at 10:58 am
Nothing for oil bulls to get excited about on this report.
HOV/Pwright – That's one of our featured trades in the Webinar today.
GMCR/CDT – Nice move down, too bad they didn't hit $110 first as we could have bought back the short puts in our spread. Rising coffee prices hitting them.
Wolf/ZZ – Thanks, good article.
KKR/Wombat – I don't see it yet.
Break/Yo – It's already broken, this market is completely unrealistic but that's because the Fed keeps telling people there IS a Santa Claus – and he comes any time we have even the slightest of dips.
ISRG/DM – With both, you have to wait and give the downgrade police a crack at them as they could go lower, though $380 is our predicted floor over the long run on ISRG. IRBT is having a ridiculous drop vs the earnings report. Consumer division is going gangbusters and military contracts were on hold – no surprise there.
With either one, step one is selling puts into the excitement of the drop. You can sell ISRG 2016 $350 puts for $44 and that's net $306, which is another 25% off and 1/2 the highs. On IRBT, you can sell the Dec $35 puts for $5.50 for net $29.50 and I'd be happy to own either at that price but, after that housing report – I'm even happier to wait a few days to see how low things can go.
TZA/Burr – Yep, sorry about those. Better to stop out quick and reload when things make more sense.
CHL/DM – I like CHL as a long-term play. They are simply having the same problem T used to have with up-front AAPL costs hurting their margins and we bought T back then too because it's the kind of thing that reaps long-term rewards. Meanwhile, I would not jump in until we see a bar forming that's not red. Especially when you are initiating 2-year plays – what's the hurry?