Diamond Profits

The last two days proved to provide significant movements in the diamonds allowing over 60% returns in a few hours.  Having set buy limits from the opening price of the 102 DIA PUTS and sell limits at your profit point would have executed flawlessly both Thursday and Friday.  The market likes the good news pre-market raises the futures, drives the market up within the 30-minutes opening trend and then lately as earnings are meeting or missing and revenues fall short throughout the day the market gives back all it's gains and then some.  102 PUTS could have been had at 1.75 limit and sold at 2.75 today.  This is another way to make money in today's schizo market, am I up, am I down, am I up, am I down...

I chose the Put over Call strategy because I have a short-term bearish outlook.  We'll see what next week brings with the companies on tap to provide earnings...

Happy trading.

CopSync (COYN.OB)

COYN keeps getting attention random days, today's volume was over 400K.  I added more at this level and with the news of its national sales force.  Yes it's only 3-people but this is a technology niche that just needs attention.  Given the recent events having real-time access to mulitple databases is crucial in identifying would be criminals and terrorists.  The fact that this is the communications technology keeps me interested because it could be used by anyone in the need of real-time communications utilizing current data driven systems.  I would like to see a federal agency get interested!

Happy Trading...

Berkshire added to the S&P 500 (BRK.B)

I hope you got into BRK.B recently.  Now just because it split doesn't add value to the stock but being added to the index makes it more favorable.  Up over 8% in the after hours.  This is a long term holding!

Happy Trading!

Berkshire Split

Shareholder's voting! Looking @ 65-70 entry point

Happy Trading

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Bullish on the Emerging Markets?

I was looking at some Emerging Markets ETFs this weekend and looking at how best to protect a longer-term investment in such an ETF.  I have only mentioned married puts recently on this site but the strategy is simply buy an equity and purchase a put on the same equity.  Purchasing a put gives you the right to put your shares of an equity to someone else at the strike price on the expiration month you choose.  Of course for this right you must pay a premium.  EEM and iShares ETF is trading at 41.95 as Friday.  A September $42 PUT costs $3.05 (the mid point of bid/ask)  So if I am very bullish on the emerging market and believe the ETF will rise over the next seven months to greater than $45 I will have  an extremely safe trade, only risking $3.05 a share.   Now, I like this strategy over a Stop strategy since you don't risk being "stopped out" as I did on INTC last Friday but having the same 8% protection.  Also, you can sell covered calls throughout the time period and if you do get called out you still have value in the PUT options, which could increase if the Equity/ETF starts to tank.

Well these are just ideas and I would recommend researching married puts or any other options strategy before using them in your trading...

Happy Trading.....