Sorry for being dormant for so long, been travelling way too much to keep posts up. Probably need to get with new technology and download the mobile client to update while I am on the road.
So, almost all of the calls we have made over the last year have been extremely profitable if you had invested in the equities outright! So what does that mean, playing the options have proven a bit difficult, partly because of greed and trying to quick-turn profits by buying front-month calls verses sticking to the plan and buying several months out. Case in point, we held the AAPL 250's, 260's and 270's over the past several months. Unfortunately most were bought a month or two out and we got caught in the antenna debacle, but rolling some forward we were able to stay in the black but not before wiping out most of the profit for the first half. So lesson learned is lesson one, have a plan and stick to the plan.
So what to do now. I picked up Green Mountain Coffee Roaster (GCMR) 33.33 calls for January 11 this morning and already making money. They had a 17% pullback on the SEC inquiry news but were on fire before that. I was watching on the sidelines as this took off, so for me this is an op to get in on a missed opportunity. The results of the accusation result in about .03 share issue so I believe the business is still sound and that the pullback is on fear rather than fact. Buy when everyone is afraid and sell when they are happy...
I have also been buying C Jan 11 4 calls, although I recommend to others to pick up Jan 12 4 calls since there is significant time value and the support around 3.90 has been tremendous. Earnings are reporting on 19 october so we'll see what's up soon.
Also, been slowing picking up Teekay (TNK) tankers, love the dividend, this is part of my retirement plan. Recommend researching them and buying on pullbacks. The have resistance at 13+ so anything below 13 or even 12 is a great buying op.
Until next time, happy trading...
