Wednesday, February 23, 2011

22 February 2011 Pardons and Profits


22 February 2011 Pardons and Profits

For the first time in more than 375 posts I feel bad about a comment I casually threw out last week. We were talking about the social unrest in Tunisia and Egypt as the first rumblings of discontent arose out of Libya. My comment about those that dared yell “Out with Gadahfi!” would have been whacked 15 years ago. To my embarrassment, more than 400 have been whacked and the situation has shaken the world market. Gold and Oil exploded today and the easy going market had a sizeable halt in its footsteps.

The larger than even we called it jump in consumer confidence could not override the instability in the middle east. As we suggested, we saw our oil stocks increase on supply and logistic fears. We pulled all of the GLD calls we bought last Thursday at profit levels exceeding 110%. Not bad for two day’s works. We also sold some Puts on AMGN (46% profit). As part of a subscription based Pirate Trade Strategy called MIT where you take long position and sell calls against it while insuring the backside with puts (Don’t try this at home kids.), we took some nice profits by buying back the calls this morning.(248% on AMZN and 591% on AAPL.)

We also continued to add to our TUFF position as it is headed in the right direction and seem to be picking up some institutional investors. Or there are a lot of us blind casino monkeys chasing this penny stock.

Salve Lucrum


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