Selling XOM calls – I’m still in favor of that play, especailly if they run up a bit more. Oil over $71 or even over $70 will lend them support so I’d be careful into inventory but we may have a great shorting opportunity ahead. At $3 I think they make a good sell but you have to be prepared to roll or DD.
PTR already made a nice, shortable move but I’ll wait for Happy to give us the go ahead when he gets out of his calls. Congrats on ONXX Happy – perfect call! Don’t be greedy.. Great going on ACH too, Dragon stuck with that and can say “I told you so” to anyone he wants.
JOYG – already so beaten down, I’m not sure I want to play the downside. Last 2 earnings let to $10 gains and here we have retraced $13 of that $20. I’d rather play the volatility crush by selling 3x $50s for $2.05 against 4x Oct $55s at $1.43, picking up the Octobers first and hoping they run up a bit to test $50 before we sell. I like this as a $10KP play with just the 4 contracts and we abort if we can’t get at least $2.50 for the $50s. XXX
Home sales down 9% from last year, Inventories up 5.1% (9.5 month supply = HUGE) and prices are coming down. If we shrug this off that’s good – personally this is not news to me but it’s amazing what kind of obvious crap shocks investors so be careful! August is guaranteed to be worse than these July numbers…