Post thumbnail of Dow 10,000 and bust?
12 October 2009
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Dow 10,000 and bust?

I don’t usually give too much weight to round numbers, but it does seem like Dow 10, ooo has been pulling us up like a tractor beam. Now, it could just be that we are at the beginning of a new bull market and 10,000 will just be a stop …

Post thumbnail of Hitting singles for 38%
9 October 2009
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Hitting singles for 38%

Today was another low volume rally on not much news. On days like today, I mostly try to sit on my hands. I do research, catch up on reading, and stay away from my keyboard (for the most part). You also have to stay alert for opportunity, however, and today …

Post thumbnail of Ringing the register on AIG
8 October 2009
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Ringing the register on AIG

Almost from the beginning, AIG has not acted as I had hoped it would for the NOV / FEB calender spread. Almost immediately it just dropped like a stone, and since the strike price was in the other direction ($60) , this was not ideal. Today, with the market again …

Post thumbnail of A second helping of FAS
7 October 2009
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A second helping of FAS

Today we are going to add a bit more FAS (the 300% levered financial ETF). Currently trading at $83.30, we are going to buy another calender spread, but for this one we are going even deeper in the money, and even further out in time. All of the factors from …

Post thumbnail of FAS : Time to get out a very long spoon
6 October 2009
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FAS : Time to get out a very long spoon

Much ink has been spilled on the pros and cons (mostly cons) of the new breed of leveraged ETF’s that burst on the scene in the past year. They have quickly become a day trading favorite, with some of the ETF’s turning over tens of millions of shares a day. …

Post thumbnail of Intuitive Surgical: Buying a small slice
5 October 2009
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Intuitive Surgical: Buying a small slice

Today’s pick is another calender spread, this time with Intuitive Surgical (ISRG). For those who don’t keep up with cutting edge, flesh slicing robots. . . . ISRG makes cutting edge, flesh slicing robots. Seriously, they are the largest player in the fast growing field of robotically enhanced surgery. With …

Post thumbnail of More Boeing: Gotta believe in the dream (liner)
1 October 2009
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More Boeing: Gotta believe in the dream (liner)

Today we are going back and adding another position to keep our first Boeing position company. Why today? Well, the stock is pulling back a bit, which should give us a better price. Also, we are buying leaps (Jan ‘11) which means the options are not going to be that …

Post thumbnail of Taking a swipe at Mastercard
30 September 2009
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Taking a swipe at Mastercard

For today’s pick I’m going to use a plain vanilla calender spread. This is just a simple bet that the stock — in this case Mastercard — is not going to move all that much in the near term. This trade is not likely to be a huge winner (%100 …

Post thumbnail of Betting on Blackstone
29 September 2009
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Betting on Blackstone

Writing covered calls is one of my favorite ways to invest. The risk profile is more conservative than a straight stock buy, and time decay is on your side. There is just nothing better than watching your callers expire worthless as your stock keeps chugging higher. Like any option strategy, …

Post thumbnail of AIG: Dead stock walking? Who cares ?!?
24 September 2009
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AIG: Dead stock walking? Who cares ?!?

Today’s option pick illustrates two very important principles in options investing. The first is that there aren’t any bad stocks, just bad risk / reward ratios. The second is that implied volatility is critically important, and this factor alone can make or break many trades.
AIG would seem to be a …

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