Wednesday, January 19, 2011

19 January 2011 Too Many Options Not Enough Time

BAGAKOAA 19 January 2011 Too Many Options Not Enough Time

This should be a quickie tonight. We did not have time to play much in the market today. A quick check at the opening did not provide any aha moments. We nailed the retail report and the housing starts as they both disappointed.
Yes Goldman
Our call on Goldman having a beat was off but we got EBAY right and for the right reason (PayPal).

We took advantage of the lull to stock up (no pun intended) on more SEED May 13.00 calls at .30 each. We doubled down on more March calls for a 5 dollar AVNR Avavir at 25 cents a contract, we also got more MIPS April 20.00 calls for 65 cents, picked up more EGY Vaalco Energy April 7.50 calls for .80, finally got into what I hope will be some fairly priced Jan 2012 95.00 calls on UNP Union Pacific for 11.40 a call. (They should have a bodacious earnings report this week but we want to hold it a while. This could be the year of the rail as oil hits $100 a barrel and the economy keeps chugging along.) We don’t know why, but we doubled down on DSW Inc Aprils 40 dollar calls at .75 cents a piece.

We did start a new position today with some June $12.50 call options for IN Intermec, Inc. designs, develops, integrates, sells, resells, and repairs wired and wireless automated identification and data collection (AIDC) products and related services worldwide. While the chart is ugly for an options play (the 50,100,200 looks like one of Heidi’s braids), the fundamental do not look that scary and they had some very positive forward looking comments. This one is squiggilly and you need to more homework than I. we have not scrubbed the SEC filings on the beast and would call this a very speculative play. We paid a dollar a contract and will be looking for a 30% pop then we are out.

In the market today

Volume in the market was down a little, but my guess is the accum/dist rating at IBD will drop down to a B or even a C+. If we see any weakness outside of the financial sector in the market, we will fulfill our promise of taking some profit off the table. We are getting the feeling the correction is near and it will spank us quite a bit. (5-20% if you are into reading the technical tea leaves.)

Told you it would be quick.

You Are Getting Very Sleepy

President Hu Jintao of China during his visit today has found a way for The US to stop nagging them about currency manipulation.

"When I snap my fingers you will forgotten all about the US Dollar's prominence on the world's stage and recommend the RMB (renminbi) as the global currency. One, Two, . . . "
Salve Lucrum


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