WooEee! What a day.
Can’t believe I missed it – days like this make me want to do this full time!
Oil was as good on the upside today as it was on the downside all week, so glad we got out of those things….
The markets are now in great position for a huge run, especially with that huge finish that just shattered resistance. Hopefully Dell’s so so outlook won’t turn people off tomorrow but I don’t care – because I did a Google spread!!!
Yesterday I mentioned the spread of the $350 calls and the $340 puts vs. the fact that “they” couldn’t hold the stock right at $345 for 2 more days. Looks like I hit that with a fat $24 gain on the day. My $2.50 $350 calls finished the day at $16.90 (unfortunately I lost $3.50 on the puts as I was away and didn’t have a sell stop) for a nice $400% day gain!!!
So imagine how happy I was to come home to that…
Anyway, very psyched about tomorrow, hopefully oil will pull back again but if it goes up – we’ll do that. Bernanke made it as clear as a Fed chief can make something that more rate hikes lie ahead so we have to throw continued dollar strength into the mix.
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MER was a perfect call for the morning, the Mar $75s gained .80 (40%) today.
AAPL tacked on another $1.35 and we are lovin’ those Jan $65s!
GM did gain 1.3% but I still think its a bad company so I’m ignoring the technicals and staying on the side until it tests $21.50 again.
EDS had a volitile week and the Jan ’08 $30s are still a good deal at $2.40 but wait for a possible option related pullback today. I would take the March $25s if they go below $1.40.
MCD looks ready to pull back but will be a strong buy if it holds the 50 dma of $35.
DOW has really been en fuego since our 2/8 pick. Look to take your massive profits and run if it has trouble at the 200 dma of $44.25. We can always reenter with $45s if it breaks up but this is a 250% gain on the March $40s so no reason to leave it out there!
I’m waiting on LVS as the puts are way overpriced (no one is buying this run-up). I am putting an offer in for 1/10 goal on the Mar $55s for $2.50. If that executes I will wait and see.
NFI was a heck of a pick last Friday, the Mar $30 puts are now $4.20 (up 275%) but were a clean triple earlier!
Last Friday I said “Watch for a bottom on SHFL right about here but I want to see it hold $22.50.” Check out the chart (and listen for the sound of me patting myself on the back!):
http://finance.yahoo.com/q/bc?s=SHFL&t=5d
This one is good to go if you are not already in. Mar $22.50s for $1.75 (.30 premium) are still a good play but up $1 from Monday…
Must keep our eye on PD and PCU for another play.
