XLF Calls

If you read the FAZ, RIFIN and PUTS post this is another option to use options to take advantage of the continued run-up in financials through earnings... Look at NOV 15 CALLS, over 100k in open interest and XLF is up 38% since July and the bullish calls and upgrades on the financial sectors should keep the rally going...

Happy trading

FAZ, RIFIN and Puts

What are we expecting with 3 major banks reporting earnings this week. JPM, C, BAC plus the DOW approaching 10000. The RIFIN is at its highest point to date at over 800. If you missed out on the bank run-up play the opposite side. Analysts expect BAC to be $30 in 12 months and JPM around $60 this means 3X ETF that are bearish on the financials are going to continue to drop. Look at Nov or Jan 16, 17 PUTS for FAZ, Jan buys you more time value and takes advantage of the possible January effect. I remember when UYG a 2X financial bull was 1.91, I had 11k shares at that point but got greedy and ignored the rules and remained bearish on them hence the FAZ lost identified on the right column of the blog...

Banks are about half way through their balance sheet losses so still much upside, especially with fees, refinances with rates so low, M&A and restructuring...

Happy Trading

DIA Conviction

My partner and I were discussing purchasing the Oct 97 DIA calls based on a belief that Alcoa was going to have a positive earnings report. Obviously we didn't believe it as much as we thought we did else we would have bought at the money today. Oh well, AA reported well futures are up over 40 points and the calls will obviously gap up in the a.m.

So how do we play from here, I think the Oct 98 should be strong since JP and GS report next week and after all the fees and refinance and balance sheet magic should report well and well that will send the DOW even higher...

Happy trading...

Diamond Calls!

Jan 95 DIA Calls have 20,000+ open interest! +DAVAQ 106 days to expiration. If 3rd quarter earnings surprise and consumer spending jumps for the holiday the market should head higher after the bad new is digested. Look at last Friday, futures down well over a hundred points, we were green for a good part of the day and closed slightly lower after a huge increase from expected employment numbers...

Happy Trading...

Magnum D'or Resources (MDOR.OB)

I started to watch MDOR at the end of August when it was around .90. I like this company for what it does and its market potential is huge. They recycle old rubber into chips and now new tires are being made. They recently purchased the largest tire recycler in the country. Today they are trading at over 1.40 a 65% return since late August.

Sep 29: Magnum Completes Acquisition of Hudson, Colorado Facility, One of the World's Largest Tire Landfills, and Perhaps Currently the Largest in the USA--thats when the charted jumped.

They are starting to get significant news coverage and attention and I don't see anywhere but up for them.

Link to the news:

http://finance.yahoo.com/q/h?s=MDOR.OB&t=2009-09-30T08:00:00-04:00

Happy Trading...