The S&P 500 is up 4.2% year to date with my portfolio up 11.5% giving me a beta of 2.7 including cash. My “cash” position is down to 12% of the portfolio.
Looking at the pre-market it looks like Bank of America beat earnings and up another $.40 pushing the return on the option I bought two weeks ago to just over 300%. The options expire tomorrow so I need to decide if I want to buy the shares at $6.oo or just sell the options and take the gain. I think BAC still has room to run but buying these shares would require me to use about half of my cash reserves so I am unlikely to exercise these options. There is nothing wrong with booking a tidy profit.
Looking at the Aussie Dollar (FXA) today I think I see another potential wedge breakout pattern that could bring it back to near $1.10. I plan to keep my eye on $AU. I may go options shopping on this one today, the $1.10 calls are looking cheap to me.
Hyperdynamics (HDY) has been a disappointment and 75% of my options in this name expire tomorrow. This clearly isn’t working but I will pick up a few February options for one last go at it but then I plan to let everything else expire (worthless) in March. Time to start packing this one in.
Sears (SHLD) could run up to $45 but since I am short a Put spread in this name it’s not “printing” yet. It’s going to take time to make this one work but it should bag a nice 50% return with little risk.
I sold some of my gold options yesterday that are going to expire tomorrow. The options were in the money but didn’t want to burn the cash to exercise it so I just took the money. My gold position in now half of what it was earlier this week. The rest of my options expire next in January 2013. I am holding onto my Platinum and will put more money into this metal over the coming months.
Rolling the Transocean (RIG) strikes down is staring to pay for itself. This was a good thing!
Let’s hope the good news continues…
traderwasteland
mattmarsh
miltonfriedman
rshm02
