GMCR Monday Update

As expected our Mar 35 Calls jumped... up... over 120% as of Friday's close.  I have closed out today as I see some short covering in this rally, after all we are at the top of the 52-week high of 37.97.

GMCR +18%
GMCR Mark 35 Calls +123%

Happy Trading...

Green Mountain News (GMCR)

GMCR is up 11% after resuming trading and restating the past several years earnings.  This is why we layered into them.  Monday our March 11 35 Calls should be decently profitable!

Happy Trading...

Green Mountain Update + TNK dividend and Citi to Cisco

So, GMCR has been taking a hit over the last 3-days with earnings due out by the 22nd.  The lack of a decision on report date is making investors nervous but a strong showing in puts traded today may indicate a bullish bet or at least some support at the 27 dollar level last touched.  Also, it appears some competition may be coming from alternative pod makers getting into retail spaces and the shortage of coffee beans raising the raw coffee price up.

This is why we use options instead of the equity.

TNK earnings today of .31 cents lower than the last two quarters but we are still in well above a 10% yield.

I sold out of my Citi (C) holdings at 4.50 this week, good top and placed that into CSCO near the bottom.  Will look at covering this next quarter.

Happy Trading...

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...