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us stock market, trade stock
[Weekend Summary]
Dear Member:
Next week is a shortened trading week and it, like this week, doesn't tell us a whole lot about market sentiment. Holiday weeks usually encompass fairly light trading and high volatility. It is a time for careful trading only.
I bought LEAPS all on Harrah's Entertainment (HET) on the rumor it was going to be purchased by a private equity group. Harrah's has confirmed the purchase at $90 a share. The stock closed Friday at $82.66 a share. My LEAPS on are only up about a half buck. It appears that the stock has not moved rapidly because it is likely that it will take quite some time before the deal is completely consummated. My choices now are to sell my LEAPS for a modest profit or exercise the LEAPS and await the $90 a share pay off. I have not yet decided which course of action to take, but I can be assured of a profit of three dollars a share if I exercise my LEAPS and receive the $90 per share.
The spreads on Citigroup (C) and SPY are just fine for now.
I adjusted my spread on NVIDIA (NVDA) by buying to close the short leg. I may have to resell that leg since the stock dipped after my adjustment.
Sirius Satellite Radio (SIRI)is again at a support and a bump could provide me with a chance to close the short leg for a profit.
BBH has drifted down and I could now sell a shorter-term call against mine LEAPS position.
Though I will be watching the markets next week, I will only trade if I see something that looks exceptional to me.
For those who aren't offended, have a Merry Christmas. For those who would be offended, have a great weekend.
Bill
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