Green Mountain Showing More Support (GMCR)

You may have read our last post on GMCR where we were trading options in the high 20's.  Since then GMCR has touched backed to 35 and has since pulled backto the 31 range showing strong support on a day like today where the DOW is down 100 points.  GMCR gapped down and dropped only to show support quickly and pull back up.

GMCR recenlty has been upgraded with a target price of $40 and S&P raised it to neutral.  The news that dropped it hard has subsided and shouldn't have any impact ont the business.

We are layering into March 2011 $35 calls 5 at a time.  They touched 2.75 this morning and the interest in actually purchasing the options is low so you have to have your plan in place with buying and selling prices in place.

Happy Trading...

Cord Blood News Trend (CBAI)

I don't like discussing penny stocks because they are, for the most part, gambling.  However, we have been successful trading a few in the past.  The only one that I will metion here since it has had a very consistent news announcemnet trend is Cord Blood America, CBAI.OB.   We recently picked this up at .0039 after watching it bottom-out after it's last pop on news.  News came out a couple of days ago about some health care insurance partnerships that led to the rapid increase on large (relative) volume.  We got out at .0065 for a 62% profit.  It topped out a little higher at the end of the day but as the chart shows we got out as close to the high as you could without a time-machine.



I truly like this company and what the CEO is doing.  I believe at some point in the future this will be a viable investment and those that hold shares and forget about them will see a nice return.  Cord Blood Storage, while not an insurance policy given the statistics of actually ever using it, is inexpensive enough and the science is still in its infancy that one-day this may help people overcome some of the most serious diseases we battle today.  A few more strategic moves to beef up the balance sheet with some profit and a reverse-split to raise the stock price to gain some attention and CBAI will be set to soar.

I will be back in when it pulls back below .004 again.

Happy Trading...

Citigroup Buy Announcement

Delta have called a Buy on Citigroup shares after noting a MACD and Triple Moving Average Crossover.

The team suggests Citigroup Inc shares are bought at 410, with a stop loss being set at 375 and an initial target of 477 being set.

 

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Green Mountain (GMCR)

I closed yesterday's GMCR options out for 12% return and open up the Jan 31.63 late this morning and closed just at the close of the market today.

C finally got the news from the Govt and popped .17 taking the Jany 11 4 Calls up by .10 today!  This is what I have been waiting for.  Now it is hard not to take profits early so I am still waiting with a .60 sell limit...

GMCR news update was that the audit by Pricewaterhouse was released after the company closed out the books for earnings, so what is the problem?  Either PWH has an audit issue or there may be no issue at all.  If you still like the business model this might be an excellent covered call set-up!  Buy at todays prices and sell the out-months just out of the money calls....

Happy trading...

What we have been up to..

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...