13.4 C
New York
Monday, April 15, 2024

Monday Wrap-Up

Well, I really sweated out that Google call all day – worked out in the end though when it hit $9.90! I gave it up at $9.50 for a $1.40 profit (17%).

We are close on PD but still too expensive to buy the option, I think we may still get it for $5. I got very, very burned last year when Microsoft decided to dividend out everyone so I would call this a light commitment.

I don’t know why but the WMT December $50s went for .75 today. The ’07 $45s are still out there for $7.80 and it’s still great deal if you are looking to sell near calls against it.

RIG had wimpy action – main issue is they have most of their Rigs under contract so they do not get a great benefit from a price bump but this is a 4 year thing, not a 2 day problem that will dry up anytime soon.

GENZ – Man I should have taken the money for my $75 this morning! Once again, do as I say, not as I do because I blew 50% of a 100% profit on my calls! I still have them with a $50% profit but it went up so fast in the morning and the chart just looked so darn good I held them too long. If I was disciplined and I had taken 1/2 of at the 52 week high, and then 1/2 with each 10% profit retrace, I would have been essentially out with a 75% profit.

The chart still looks great and I still have my December calls which are already up 30% so we will see what tomorrow’s action will bring. I mean, of course it has to consolidate a little to break a 52 week high – right?

GM – Ca-ching! The only problem with being so right on this one is I forgot it would also act as an anchor on the Dow and mess up what could have been a really good day.

BTU – what the hell was that? BTU is trading down on rumors of warm weather while the rest of oil is holding up expecting cold – we need to all read the same almanac at least!

Transports look very solid. Very good action on UPS. YELL will be next.

We are on 2 key technicals with the Dow at 10,697 and the Nas right at 2,200 so tomorrows inflation numbers and later consumer numbers will probably set the direction through the end of the year. I never try to predict these things since they are based on some combination of tea leaves and voodoo, I just try to react when it happens.

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