Zuko775 – Yeah definitely look at the calls for September for a short, but the stock took off and is just trading ridiculously high. I didn’t have time to put in an entrance before the stock moved up, but I think shorting up at these 6.70 – 6.80 levels is really positive.
Gatsby – I think you should always take profits whenever you have made money. That is my philosophy. Probably because I am cautious and have been burned so many times. I think around 14 is a really nice gain for SRS. Where did you enter?
lflantheman August 19th, 2009 at 1:07 pm
AXL/Bassdad/David……I agree with David . AXL will fall, but it may hold up for a few more days. Bassdad, better roll those Aug Puts out to Sept before they expire worthless.
ADI rising nicely. In yesterday with Sept 30 calls @ .20
David…I think your advice is more accurate than you think. Just have to wait for things to play out.
terryongarland November 3rd, 2010 at 6:35 pm
Austerity ? Do you believe that will happen…. I mean really. Obama has the veto . Just don’t see that happening, but I hope the limitations on spending will force the states to cut their inflated payrolls.
One student asked Buffett about his investment in Goldman Sachs that he made during the pit of the financial crisis.
In answering the question, Buffett vividly set the scene of the crisis, describing an economy that was truly teetering on the brink. And in setting that scene Buffett heaped gigantic praise on George W. Bush, which we've highlighted in red:
Money market funds held a lot of Lehman paper. It happened overnight, 30+ million Americans who believed money markets were safe, and then Lehman fails. This caused a major money market fund to “break the buck” and lose value. It became a great silent electronic run on money markets. There was $3 1/2 trillion in money market funds and $175 billion of funds flowed out in the first three days after Lehman failed. All money market funds held commercial paper. Companies like GE had a lot of commercial paper. After this, American industry literally stopped. George Bush said, “If money doesn’t loosen up, this sucker will go down” – I believe this was the greatest economic statement of all time. This is why he backed up Paulson and Bernanke. Companies were counting on the commercial paper market. In September 2008, we came right to the abyss. If Paulson and Bernanke had not intervened, in two more days it would have been all over. BRK always has $20 billion or more in cash. It sounds crazy, never need anything like it, but some day in the next 100 years when the world stops again, we will be ready. There will be some incident, it could be tomorrow. At that time, you need cash. Cash at that time is like oxygen.
We can only surmise exactly why Buffett found Bush's words so powerful, but it's the combination of understanding that the answer to the crisis was looser money and the understanding of the stakes — that it could have all totally collapsed.
And incidentally, the insight embedded in Bush's statement isn't limited to times of crisis. Loosening the…
Lflan – Haha yeah it typically works out. I just am super super hard on myself. Fundamentals work in the long run, not always in the short term. Thanks for the rec to Bassdad.
On AXL, we are seeing it hang in this 6.60s range, and it is only about 33% off its 52 week high now. I look for the stock to lose 5 – 10% in the near term. In the short term, very overvalued. In the long term (more than one month), this stock definitely has some potential if the American auto industry can continue to rise. However, post Cash for Clunkers, I think F, AXL, and other auto parts makers may be very disappointing. Great price to hold for the next month if you have the patience.
RMM and Will – I really can’t explain it. The stock jumped back with the rest of market and got some definite fuel from being oversold so much. I apologize you got out early, but this one has completely baffled me.
Note from dshort: With yesterday's release of the Federal Reserve's Z.1. Financial Accounts of the United States for Q3 2013, I have updated this commentary to incorporate the latest data.
Let's take a long-term view of household net worth from the latest Z.1 release. A quick glance at the complete data series shows a distinct bubble in net worth that peaked in Q4 2007 with a trough in Q1 2009, the same quarter the stock market bottomed. The latest Fed balance sheet shows a total net worth that is 38.7% above the 2009 trough at a new all-time high 11.8% above the 2007 peak. The nominal Q3 net worth is up 2.6% from the previous quarter and up 11.0% year over year.
If you can't beat 'em, join 'em, copy 'em, and then beat 'em. While everyone's attention has been glued to Bitcoin (and its various smaller and less viable for now alternative digital currencies), JPMorgan has submitted a patent which appears to set the scene for a competing centralized network to Bitcoin. As LetsTalkBitcoin noted first, the "Metho...
The Whitaker Companies announces the sale of Whitaker Medical a leading physician staffing firm, to On Assignment (NYSE: ASGN), a leading global provider of diversified professional staffing solutions.
Whitaker provides experienced physicians and mid-level practitioners across a wide variety of sub-specialties to medical facilities nationwide and has been in business since 1989. Whitaker will become a part of VISTA Staffing Solutions, making VISTA the fourth largest physician staffing practice in the United States with combined pro forma 2013 revenues of over $130 million.
“We are very pleased to welcome Whitaker Medical into the VISTA Staffing Solutions and On Assignment family,” said Peter T. Dameris, president and chief executi...
Today, with very little market moving news, the S&P 500 closed at 1808.4, yet another new closing daily high. The index did touch the 1811 area on at least three distinctly different time slots creating a new resistance level. But after last week’s bevy of positive economic surprises, the sharp gain of 1.1% on Friday, leaving the index just a tiny point away from its ninth consecutive up week, we can’t be too quick to suggest today was a topping rally. For one thing, volume was quite low as traders seemed to be trying to sort out the odds on the earliest date of Fed tapering. Estimates range from this month to March and even later. But it’s going to happen…so why so much emphasis on when? Perhaps protection of end-of-the-year profits in so many fund managers portfolios? ...
OSIS – OSI Systems, Inc. – Options volume on OSI Systems today is well above the average daily level for the stock, with upwards of 7,500 contracts in play as of midday in New York versus average daily volume of 57 contracts. The surge in options trading on OSI Systems coincides with a 40% decline in the price of the underlying shares to $39.00 today, the lowest level since October of 2011. The company provided an update on a recent $60 million order cancellation by the Transportation Security Administration (TSA). Call options are more active than puts, with the call/put ratio hovering near 2.0 as of 12:40 p.m. EST. Some traders appear to be selling out of the money December and January 2014 expiry calls, while others step in to buy the contracts perhaps in the expectation that shares rebound in the...
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This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).
We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options.
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These rallies are becoming familiar. In early July we saw a streak of 12 of 13 sessions in a row up, early September 11 of 12, and mid October 11 of 13 (current streak). It is a bit uncanny the similarities and how the escalator goes straight up in vertical ascent as we see indexes come out of mini corrections during QE. So we are about at the same stage where the last two began to tire, so it will be interesting if this is similar or if the current consensus of the market that there is nothing to worry about until next year as the Fed and D.C. are both off the table and this 3% annual growth rate in earnings we are now seeing in the S...
Welcome to the fouth update of the IRA Virtual Portfolio. First I am going to summarize the current state of the Portfolio then I will get into all the activity we had during September expiration.
Profit and Loss – Net of closed positions the portfolio is up a total of $769
Market Commentary – Last expiration I said, "I would like to put a total of $20,000 to work by the end of SEP expiration. If the VIX pops up to around 20 I plan to put about $50,000 total to work." The market didn't quite reach the goal but I did manage to deploy $15,000 of buying power. I still feel the market is too high and expect a correction during October. If the vix pops up to around 20 I still plan to put about $50,000 to work. If a correction doesn't happen I still plan to have a total of $25,000 in buying power put to work by October expiration. Now on to the act...
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Come and get it! Read all about it! Biotechs, biotechs and more biotechs to buy buy buy for your portfolio! To date, almost 30 biotech companies have hit the market. Most of the time, there are fewer than 10-12!
For the last five years, biotechs have had issues obtaining offer prices above expectations. In 2013, that trend looks to be broken. According to BiotechNow, the offer prices are 4% above expectations! In addition, biotechs are going public with little more than a wing and a prayer (pre-clinical or Phase 1 data only). Really? What this means is that the drug or technology looks good in mice, rats, or dogs, etc, but there is no smidgen of evidence that it will work in humans. That's what is called an appitite for RISK!
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