[Weekend Summary]
Dear Member:
The markets are really looking bullish, breaking multi-year highs. A time for cautious optimism for the bulls. These moves generally helped my trades. BBH was up $1.14 over the last 5 trading days. EBAY jumped $2.99 over the same period and Micron (MU) was up $1.20. SPY moved up $3.25. In fact, it moved so quickly, I need to be mindful that I am short the Jan 129 calls that I wrote against my Jan '07 120 calls. I may buy back those current month 129 calls if SPY keeps climbing. Even if I wind up doing that, the gain on the LEAPS should be greater than the loss on the short term calls.
The two straddles on Cardinal Health (CAH) and Morgan Stanley (MWD) are treading water as straddles often do. Both stocks seem to be at an area where movement could be expected. MWD is in an uptrend approaching resistance. Once it deals with the resistance, I would expect a move; it should either resume its' climb or begin a retracement. In either event, if the move is fairly strong, the position could profit. CAH is in similar straits, dancing along a little support/resistance line, but with what I see as a possible upward bias.
Enjoy your weekend!
Bill
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