Post thumbnail of Cashing out ISRG
28 October 2009
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Cashing out ISRG

Today ISRG pulled back about 3%, right to the $250 strike price of the calender spread that we own in the portfolio. The November 250 put that we sold still has about eight dollars in time value left, and we could hope that the stock will stay right here so …

Post thumbnail of A safe (ish) way to short a highflying stock
26 October 2009
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A safe (ish) way to short a highflying stock

A few weeks ago, with Amazon trading below $90, I wrote an article about why I thought Amazon was a terrible short candidate  (see here http://seekingalpha.com/article/162186-why-shorting-amazon-is-a-bad-idea). Over valuation can look like a compelling reason to bet against a stock — after all, sanity has to return sometime, right? But as Keynes …

Post thumbnail of Long term Google
23 October 2009
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Long term Google

I have been looking for plays that would get me some long exposure to google, and today I found a good one. It’s a long term play expiring in Jan ‘11, and it is fairly time decay neutral, so it should be a good place to park some cash for …

Post thumbnail of Yet another bite at the Apple
21 October 2009
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Yet another bite at the Apple

With Apple flying yet again today, I have decided to stake out some territory to the upside. I doubt the stock will collapse in the near term, and I also think that the overall market is going to face some headwinds — at a minimum it will take some time …

Post thumbnail of Leap into Apple
20 October 2009
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Leap into Apple

As I mentioned in yesterday’s post, I was looking today for a nice Apple long play after they posted a great quarter. I decided to go long and conservative with a Jan ‘12 ratio put spread. Buying a 250 put and selling 2 200 puts yields a $9.00 credit. The …

Post thumbnail of Taking a bite out of Apple
19 October 2009
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Taking a bite out of Apple

After the close today, Apple reported earnings, and they were very, very good. It beat on the top line in every segment and saw nice unit growth as well. Even more importantly, their gross margins increased at the same time. All in all this is an amazing performance from a …

Post thumbnail of Expiration Friday (thank you Google!)
16 October 2009
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Expiration Friday (thank you Google!)

I always enjoy expiration friday. It’s a bit like Christmas, where you wake up early and rush to your computer to see what Mr. Market has left under the tree. Will it be a crisp new pile of fresh greenbacks? (thanks, uncle Ben!) Or a lump of coal? Unlike Santa, …

Post thumbnail of Google earnings play
15 October 2009
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Google earnings play

With earnings this close to options expiration, I am going to put up an earnings play for the nimble. This is NOT a play that I would put in the conservative 100K portfolio, as it is more of an outright gamble as well as being a one day overnight position. …

Post thumbnail of Woo Hoo! Dow 10,000!
14 October 2009
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Woo Hoo! Dow 10,000!

So today we finally broke the psychologically important 10,000 mark on the Dow. Will it stick? Who knows. I have a feeling that there may be a little buyer’s remorse over the next couple of weeks as the market digests this latest push higher. Rally over? Not so fast. This …

Post thumbnail of All about the Benjamins
13 October 2009
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All about the Benjamins

For today’s pick we are polishing up our crystal ball and looking far into the future — a bit over two years, to be exact. The new 2012 options have arrived hot off the presses, and I for one am excited about getting an extra year to play with.
As an …

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