Rock And Roll
I think we need to start celebrating
Boxing Day here as well…
We are looking more or less unchanged ahead of what will
undoubtedly be another very
quiet trading day. Most of the European markets are closed, and
there is little, if any, news expected.
Some reports have surfaced that bin Laden died of
“natural causes” earlier
this month and was buried in the Tora Bora area. Since this news
can’t be confirmed or denied, I wouldn’t expect it to have an impact.
Holiday sales reports should start to drift in and could
cause some rock and roll in the
retail sector, which has been incredibly strong of late.
Already, Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) is out saying that sales
volume was up 86% vs. last year.
This has already boosted Yahoo! shares by more than $1.00 in pre-market
trading. Naturally, the other e-tailers should go along for the
ride —
(
AMZN |
Quote |
Chart |
News |
PowerRating),
(
EBAY |
Quote |
Chart |
News |
PowerRating) +/~$1.00 also.
Once again, focus on the
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) index. It needs
to get off of its butt soon or
it will be in trouble technically.
Updates:
Cold weather pouring into the country may boost Nat
gas/Producer stocks.
We will take another look at our Dynegy
(
DYN |
Quote |
Chart |
News |
PowerRating) ratio
spreads at lunchtime.
Current Recommendations:
Continue Gamma scalping the
(
GENZ |
Quote |
Chart |
News |
PowerRating) straddle.
Rolls/Adjustments:
None
Recap of open trades:
Long-term
Airline calendar spreads
(
AMR |
Quote |
Chart |
News |
PowerRating) Jan./Oct. 25 call calendar @ .75 — Oct.’s went
out worthless, holding the Jan.
25 calls.
(
UAL |
Quote |
Chart |
News |
PowerRating) Jan./Oct. 25 call calendar @ .70 — Oct.’s went
out worthless, holding Jan. 25
calls, looking like rip-ups.
Reverse Collars
(
AWE |
Quote |
Chart |
News |
PowerRating) Jan. 12/15 reverse collar (long the Jan. 15
calls, short the Jan. 12.5 puts)
@ .05 average. Stop below.
(
TLAB |
Quote |
Chart |
News |
PowerRating) March 17.5/15 reverse collar (long the March
17.5 calls, short the March 15
puts) @ 1.50 credit average.
Buy-writes
*
(
AMZN |
Quote |
Chart |
News |
PowerRating) Jan. ’03 10 buy-write @ 5.15 (2 units) —
hold.
*
(
JDSU |
Quote |
Chart |
News |
PowerRating) Jan. 12.5 buy-write @ 9.60 — hold.
Proxy buy-writes
(
BA |
Quote |
Chart |
News |
PowerRating) Jan. ’03 35/Jan. ’02 40 call calendar @ 5.00 —
hold.
BA Jan. ’03 40/Nov. ‘ 01 40 call calendar @ 3.00 — hold.
Complex Strategies
(
JDSU |
Quote |
Chart |
News |
PowerRating) — Long 1 unit of the Jan. 10 calls and short
2 units of the Jan. 7.5 puts @
$1.00 credit.
(
GENZ |
Quote |
Chart |
News |
PowerRating) — Long the Jan. 60 straddle at $6.50, (50%)
— hold.
Short-term
Call Positions
(
WCOM |
Quote |
Chart |
News |
PowerRating) Jan. 12.5 calls @ 2.40 — hold. Stop below.
Put Positions
(
TGT |
Quote |
Chart |
News |
PowerRating) — Long the Jan. 35 puts @ 1.15 (100%) — hold.
(
WMT |
Quote |
Chart |
News |
PowerRating) — Long the Jan. 55 puts @ 2.35 (50%) — hold.
Put Spread Positions
(
BAC |
Quote |
Chart |
News |
PowerRating) — Long the Dec. 55/60 1:2 ratio put spread at
.30 — hold.
(
AZO |
Quote |
Chart |
News |
PowerRating) — Long the March 55/65 put spread @ 2.125
(100%) — hold.
(
BBY |
Quote |
Chart |
News |
PowerRating) — Long the Jan. 60/70 put spread @ 3.00 (50%)
— hold.
STOPS
(
AWE |
Quote |
Chart |
News |
PowerRating): Stop @ 12.25 close only.
(
WCOM |
Quote |
Chart |
News |
PowerRating): Stop @ 13.95 close only.
(
TLAB |
Quote |
Chart |
News |
PowerRating): Stop @ 11.95 close only.
|
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Also note that spread strategies involve multiple commissions
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* Because of the importance of tax
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* Supporting documentation for claims,
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is important to note that the options strategies discussed herein are not
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substantial risk. Moreover spreading strategies do not eliminate risk
and involve multiple commissions.
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