DHH Options Time
by Sabrient - March 18th, 2011 4:01 pm
Dark Horse Hedge is Rocking (2) & Options Time Again
By Scott at Sabrient and Ilene at Phil’s Stock World
My heater’s broke and I’m so tired
I need some fuel to build a fire (actually need something that cools heat down)
The girl next door (Tokyo), her lights are out, yeah
The landlord’s gone, I’m down and out
It’s cold gin (option) time again
You know it’ll always win – KISS
The tragic developments in Japan took center stage this past week and our hearts go out to everyone in Japan, and everyone who is touched by this catastrophic event.
Prior to the earthquake and tsunami, the VIRTUAL Dark Horse Hedge virtual portfolio was positioned with a 70% Long / 30% Short tilt. We are now considering moving to a 50% / 50% balance. We will most likely do that, assuming no material change in the world events, by adding to our short positions next week. In the meantime, we have two option positions which are expiring today and we wanted to add to the review we began last week. (Click here for our first four long positions reviewed a week ago.)
Options Expiration:
Radware Ltd (RDWR): On November 11, 2010 we added Radware (RDWR) to the virtual portfolio using Phil’s Buy/Write strategy. At that time RDWR was trading at $33.39 and we added half the shares we wanted (100) and sold the March $35 2011 call and March $35 2011 put to complete the buy/write. On December 7, 2010 when the stock traded up to $40, we rolled the call out to the Jan $35 2012 call, which we sold for $9. We kept the March $35 2011 put we had already sold for $5.10. The put (as 65-70% of options do) will expire worthless today yielding a $5.10 profit. At this time, we believe it is prudent to hold the shares, currently trading at $35.56, and the Jan $35 2012 call.
Xyratex (XRTX): On December 20, 2010 we added Xyratex (XRTX) using the buy/write strategy and acquiring half the shares we wanted exposure to and selling March $15 calls and puts for a net $3.60. XRTX is trading at $11.14 today on expiration day, so the call side will expire worthless ($1.80 profit) and the puts will be exercised – the
IS THE SMART MONEY GETTING SHORT?
by ilene - October 5th, 2010 10:49 pm
IS THE SMART MONEY GETTING SHORT?
Courtesy of The Pragmatic Capitalist
The most recent commitment of traders report (courtesy of Sentiment Trader) shows a massive short accumulation in the Nasdaq 100. If you look at past occurrences their market timing has been fairly good. The current net short position is almost twice as large as any occurrence in the last 5 years. Is the dumb
Don’t Stop Believin’ – DHH shorting HUSA again
by ilene - September 23rd, 2010 9:36 pm
DARK HORSE HEDGE – Don’t Stop Believin’
Working hard to get my fill
Everybody wants a thrill
Payin’ anything to roll the dice just one more time
Some will win, some will lose
Some were born to sing the blues
Oh, the movie never ends
It goes on and on and on and on
Don’t stop believin’
Last weekend we wondered “Where do we go from here?” and so far the answer is nowhere. The S&P 500 closed last Friday at 1125 and today at 1124. We went through what thus far would be classified as a false breakout on Monday as the indexes continued the strong September showing but have traded lower every day since on continuing worries about jobs, or the lack thereof.
HUSA however has inched its way back up to $9.87 during that same period and triggered a 4th DHH recommendation to SHORT HUSA. The reasons have been well chronicled in past editions and so we won’t recite them again other than to repeat the song “It goes on and on and on and on”. Nothing has changed about HUSA since the first SHORT on July 1, 2010.
SHORT HUSA at the open Friday, September 24, 2010
Chart by FreeStockCharts.com
Dark Horse Hedge: BOOM! take profits and run
by ilene - July 30th, 2010 11:50 am
DARK HORSE HEDGE: BOOM! take profits and run
By Scott at Sabrient and Ilene at Phil’s Stock World
Buy to cover Dynamic Materials Corp (BOOM) at the Market, Friday July 30, 2010
In the spirit of "second verse, same as the first" Dark Horse Hedge will take advantage of the less than well received earnings report from BOOM after Thursday’s close to cover the SHORT position taken on 7/23/10 at $16.15.
BOOM is down over 9% for the day and we will replace BOOM with another short during the day as we monitor the market’s activity.
Check back.
VXX – Buy signal update
by Chart School - May 5th, 2010 9:41 am
VXX – Buy signal update
Courtesy of Allan
Below a follow-up of the April 28 VXX Buy signal:
All of my stock index models that recently went Short in their Daily Models are now knocking on the Exit door of their respective Weekly Models. Should those models flip to Short (with VXX flipping Long on its Weekly Model), I will be all-in on the short side.
Allan’s newly launched newsletter, “Trend Following Trading Model,” goes with his trend-following trading system. Most trades last for weeks to months. Allan’s offering PSW readers a special 25% discount. Click here. For a more detailed introduction to the Trend Following Trading Model, read this introductory article.
Another Go @ GS
by ilene - July 14th, 2009 3:18 pm
Click here for a FREE, 90-day trail subscription to our PSW Report!
Another Go @ GS
Courtesy of Tim Knight’s Slope of Hope
DAMON VICKERS: TIME TO GET AGGRESSIVELY SHORT
by ilene - June 26th, 2009 2:13 pm
DAMON VICKERS: TIME TO GET AGGRESSIVELY SHORT
Courtesy of The Pragmatic Capitalist
Damon Vickers, whose hedge fund returned 63% last year, started getting aggressively short last week and earlier this week.