Thu Oct 06, 2011 9:55 am
I traded RIMM back and forth to position the average price as favorably as possible, but I was getting increasingly frustrated (once again) with the poor ability to use even RIMM options to day trade. I can not wait for the SEC to open up the market and level the playing field. My biggest fear is it will require another market with more liberal rules to force the changes here. If we are not careful, America could lose the leadership of its capital markets and watch it move away. With protestors in NYC making news everyday, the thoughts become very scary very quickly. What so many fail to realize is Wall St. is not the problem, but a symptom of the problem. You can not have people voting that do not have their own interests aligned with the interests of the nation. Once you allow people who do not work, who do not invest time, energy, and money into the economy, you have a situation that people will elect those that will enact policies that are disastrous for the long term health of the nation.
Ok, sorry, off the soap box for now. I will get back on with a different thread. Obviously, I need my second cup of tea for the morning.
RIMM came back in nicely for me, and I was able to make a modest gain. In the end I only was able to keep 75% of the gain as the rest went to commissions. To much scalping obviously. Today I am looking at TSL, S, LVS
Fri Oct 07, 2011 12:09 am
I was pleased to see the market moved higher today. Even HPQ was able to move North for a change. I would like to extend a very big thank you to all the buyers out there pushing the price higher. With a mid single digit PE multiple it's about time. COCO is still trading under $2 but off the lows put in recently.
I traded AAPL today but didn't allow for much size to start out with. AAPL moved in my desired direction almost immediately and I was up about 20% or more at one point (I traded Apple with put options) and watched the unrealized gains vanish. I looked over all the charts while I was still able to walk with my money back including a small tip to the waiter but decided it still looked weak. I faded the move as it moved higher until I reached a point of having some real size on the position. At this point, I actually was much more comfortable with the trade than any other point. Had I put on larger size to begin with I may have exited and been finished with the trade. I guess you could say I was not happy with a large, but small gain. In the end AAPL did break lower and I covered my short position near the low of the move. I reversed from having a large small gain to ending with a small large gain. In other words, smaller gain per unit but a much larger gain overall. since I put dollar in the bank and not percent, I ended up much better off. I put Apple at an expected price of $370 or less by the end of the week.
I also believed it would be realized by the end of today. I have to be careful in trading my thoughts. I usually get it right, but often execute it early. The market can not have it both ways. Steve Jobs can not be that great of a leader AND Apple does not carry on like he didn't matter. I believe Steve Jobs did matter, and matters a lot. I will likely fade any strong moves higher until something changes my outlook.
Mortgage rates hit a new low today. You can borrow money for under 4% now. 3.97% was quoted today. I often wondered how banks can charge what appears to be so little for loans. Turns out they are doing just fine (when they under right properly). The average 30 fixed rate mortgage only lasts about 8 years. Add in all the closing costs and fees, points, etc... and they are doing just fine. Of course they are not doing just fine now, but if the government would allow the free market to work as it should and not decide it knows better who should own a home, it will again.
Mon Oct 10, 2011 12:46 pm
Profit target is about $0.60 of average
Mon Oct 10, 2011 2:01 pm
Mon Oct 10, 2011 11:49 pm
Corinthian Colleges (COCO) moved up about 11.5% today. This places the put options I wrote back in the green. Apollo Group (APOL) was upgraded today, sending the whole for profit education higher today. Credit Suisse upgraded Apollo Group to a buy from neutral as well as raised the stock price target higher by $12 to $47 a share.
Netflix after announcing a full retreat, or at least a major spin job, bounced higher in premarket trading. Netflix dumped the Qwikster idea, or at least said they did. It was enough to gap higher the open, but Netflix fell at a pretty steady pace for the rest of the day. After making a new low just above $107, the stock did manage to climb higher into the end of the day for a close off the lows. I traded Netflix in several accounts, and by the end of the day, I had a small gain in two and kept one open for an overnight hold. I expect Netflix to climb higher through the week, and so I bought weekly calls with a strike price of $120. The stock is due for a technical bounce after three attempts to fall below $107 and failing. while there is certainly a lot of bad press lately, it's a lot to do about nothing. NFLX remains one of the best values on TV, and while limited in content, cable can't touch it. As much as the press has pounded on Netflix, the guidance remains the same. At the end of the day, it's the money that really matters. I believe that simple fact has kept the stock above the psychological $100 level this long. Watch for a bounce in the stock in the next couple of days.
Sprint also found the way lower on a day with the S&P 500 sharply higher. I shorted Sprint $2.00 puts to create a bullish position. I will likely really back the truck up and get long if the stock is under more pressure tomorrow. I may have to hang on to this one a while, but this is one of those stocks that come along about once a year and screams out "buy and hold". Sprint is priced for bankruptcy, with every possible problem trying to be get priced in. I think it would be a mistake to let shares go so cheaply when a hold of another six months is likely to yield 20% or more. So Sprint is my investment of the day.
I wrote an article about NFLX for seeking alpha today. It's on the SA site, but has not hit the wires yet.
What do you think about Sprint, Corinthian colleges, and Netflix? Feel free to share your thoughts.