I have been rather active in the last few days. I have been trying to resist the urge to be greedy. I am going against my mantra of “Don’t turn a trade into an investment and don’t turn an investment into a trade!”. I did sell some long term plays last week, but avoided my past mistake of simply putting the proceeds on the sideline. I sold out of some dead money positions (so I thought) and moved into a couple of firm plays that are also dividend plays (BLK, PFE, BP, GS). BP has been a solid winner and has a yield above 6% a year. Thanks for the BP call Teddy!!
I am currently in a TimothySykes.com short of DRGZ. I will stomach the short term pain over the next couple of days since I don’t expect to be able to find shares to short. Short them while you can. I had some success with a past call where shares were available during the run but not during the fall (GWSC).
I am speculating on the earnings of FNFG (First Niagara Financial Group). They are a regional bank (In my back yard) who have been clicking on all cylinders for the past 6 months. They did 2 offerings during the worst of it. Took TARP and were one of the first to pay it back. They report earnings on Friday. My option play is a speculation that the numbers will be good and will move this stock back up to the level the reached in late April.
I also placed a buy of ERX (energy bull). This is a volatile way to play oil and the energy sector. As I write this, half of my position sold off (7.48% gain in 1 day). I am holding the other half to speculate on the EIA petroleum status report due at 10:30 today.
I have written many times about how much I like Corning. I placed an option trade and the shares got caught in the market downturn. I bought 10 more contracts. I sold 8 of the 10 contracts yesterday for a 33% gain. I am holding my last 9 contracts for a longer term play. If the recovery is real, Corning will be a big winner. These are Nov 15 call options. Plenty of time left and well into the money.
BTW: Scott has been on Vacation. He’ll be back to share.