12/19

12/21/2007, at 6:21 am

We didn’t see any significant action today to suggest any change in the current market downtrend, though the NAZ did show some surprising strength on higher volume but still less than average.

Closed out many positions today with DEC expirations except those with considerable premium left to burn.  We will also be carrying over a few positions to 2008, most notably on the Long side…

AAPL - Evaluating rollout opportunity to continue this consistent winner.  Targeting JAN 09′s now to for a possible LT 2008 trade.  

ATVI – Rolled out JAN 17.50′s to JAN 09 20′s with intention to hold through 2008.

ELON – Holding FEB 15 Calls but looking to add to position with 09′s for LT trade.

ESRX -

ISIS

NVDA

SNDK – Currently Neutral but may shift if this double bottom holds.

VCLK – Neutral but looking for a new breakout.

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Shorts being carried over…

USNA – Adding APR & JUL Shorts with offsetting far OTM Short Calls to cover some premium.

ABK – 12/26 – Covered the remaining portion of our ABK Short today and used ~20% of the profit to add to our original short hedge, creating a ST Long “spec” trade by adding more 35/40 Call spreads with an average price of ~.70.

CROX – Currently Neutral but we’ll see what happens after earnings.

DRYS – Staying Short until, and if, it shows BO strength.

FXI – Still Short and looks like it may finally showing weakness…

IIG

IOC – Neutral and undecided

KBH

LFC – Same story as FXI.  Originally intended as part of our LT portfolio hedge.  Obviously it hasn’t worked out so well…yet.  Fortunately we’ve had the VIX hedge working very well all year.

MBI – Covered ~75% of our core Short in MBI on the news of the Davis deal and put on some ST 25/30 Call spreads for ~.95.  Still holding 20/15 Put spreads as a hedge.  Net Long but mimimal exposure and a healthy upside it the stock rallies to 30 +.

NTRI – Small Net Long now on anticipation that this stock will rally into earnings on their new product release in the strongest quarter for diet systems.  

TOL – Neutral and waiting for a confirmation in either direction.

RMBS – Neutral and undecided but it always surprises one way or the other.

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Tomorrow should be fun….  or not, could be a snoozer.  But we’re thinking January could be very exciting indeed.

Coach BD

Filed Under: Past Commentaries