Weekly Put Update
A great week for my picks.
I said not to short TRW and I was right - up 10% before pulling back to being up 7%
Meanwhile, the puts I called my favorites actually did quite well this week.
I suggested that you buy puts with a strike price 10% below current price. As of 1 week, here are the price changes for the underlying stocks:
Price Change
M 2%
ZLC 6%
HOG 2%
KMX 3%
CCL -0.50%
MGM -8%
LTM -17%
The big wins were MGM and LTM. ZLC is the only loser so far.
ZLC reported horrible results and so forth but they have convinced investors that they have a turnaround plan. Remember, retailers have turnaround plans that make investors excitde - typically they mean layoffs and store closings. But that doesn't address the core problem - sales are falling. Oh, and gold prices rising are a problem for them.
Keep these puts open.
I said not to short TRW and I was right - up 10% before pulling back to being up 7%
Meanwhile, the puts I called my favorites actually did quite well this week.
I suggested that you buy puts with a strike price 10% below current price. As of 1 week, here are the price changes for the underlying stocks:
Price Change
M 2%
ZLC 6%
HOG 2%
KMX 3%
CCL -0.50%
MGM -8%
LTM -17%
The big wins were MGM and LTM. ZLC is the only loser so far.
ZLC reported horrible results and so forth but they have convinced investors that they have a turnaround plan. Remember, retailers have turnaround plans that make investors excitde - typically they mean layoffs and store closings. But that doesn't address the core problem - sales are falling. Oh, and gold prices rising are a problem for them.
Keep these puts open.
posted by Andrew at
3:19 PM
1 Comments:
I agree with you on badly run companies like Zales, but the upside on those puts is limited.
MGM I think is the biggest potential gainer, the bump they had from CityCenter is short lived and they will not go higher. I will be buying some of those PUTS on strength.
HOG is a tougher call. They managed to securitize their debt and expansion overseas could keep them doing well. I will watch before jumping in.
I had a terrible day today, SKF reversed right at the end of the day and when I finally decided to exit my LONG position in APPLE, they move up at the end of the day.
This market has me wrapped around its finger this month.
The themes I follow is still, average companies will have their stocks go down between now and August.
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