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Tag: put diagonal

  • OPNewsletter (Dec’09) Up +10.7% (Open)

    OPN December 2009 portfolio is up +10.7% (still open). We invested 73.9%  of capital per portfolio spread and all the mini-portfolios are making money. The Iron condor sub-portfolio is closed for +14.14% gains. December portfolio’s weekly update is now available at the OP Discussion forum (Member’s only section). To access the Subscriber’s Page of the…

  • AAPL +35.6%; MCO +3.5%

    Basic members were alerted for 2 free trade ideas. One is closed for nice gains while other trade has been successfully rolled to next month. Starting with Moody’s (MCO) trade idea. The basic premise for that trade was shorting of Moody’s by hedge fund manager David Einhorn, who correctly questioned the health of Lehman Brothers…

  • Green Mountain Too Hot to Hold

    Today Barron’s reported that GMCR may be too hot and investors should look closely at the company’s profits through purchases from royalty-paying licensees. A few weeks back I published my bearish bias contrary to what Zacks had (Aggressive Buy) and suggested two different ways to trade GMCR. With shares trading at almost 60 times earnings…

  • An Option Trader’s Way to Short Moody’s

    Shares of Moody’s Corp (MCO) fell sharply on Thursday after hedge fund manager David Einhorn, who correctly questioned the health of Lehman Brothers four months before its collapse, disclosed he was shorting the venerable ratings agency. His logic- the parent of Moody’s Investors Service undercut the value of its primary business — assigning grades to…

  • Who is defying The “D” word

    In such a market when almost every other counter is falling apart, it’s hard to imagine that there might be a company that is defying gravity day after day. It has rounded-up 78X returns since the great bull started in Oct 1998. Talk about technical indicators and everything is probably going to tell you, it’s…

  • Put Diagonal Spread- An Income Startegy to Play Downward Move

    The Dow has still been unable to regain the important resistance of 11,750 (few points here and there). It danced around that level for a while before falling like a hard rock. In this post, while I shall be sharing about Put Diagonal Bearish startegy, I shall also briefly touch upon current market state. Dow is…

  • Interest Rates – Increase or Flat?

    There are two major economic indicators due today. Durable good order at 8:30am US EST and of course the FOMC announcement at 2:15pm. Markets may not move as much in the morning but expect the big move around 2:15pm to 2:30pm. Implied volatility of the July options will rise before falling back after the announcement.…