[Weekend Summary]
Dear Member:
A couple of weeks ago, I mentioned that February can be a down month in the markets. We may have begun to see a move in that direction this week as all the major averages drifted down and volatilities moved up slightly. Some bearish fuel was added with rising interest rates and oil back above $60 a barrel.
This week, I opened a bullish put spread on Nasdaq Stock Market, Inc. (NDAQ) and the stock moved up. If this spread can hold until expiration, it could result in a better than 30% return on risk before commissions in a little over 5 weeks.
Bea Systems (BEAS) held at the uptrend line on Friday so I remain in my LEAPS. If it dips, I may sell some calls against my long position to reduce risk and bring in some income if I can get a decent premium.
SPY, Citigroup (C) and Anadarko Petroleum (APC) all fell thus setting up the possibility of taking some profit on the short legs of my spreads on these issues.
Sirius Satellite Radio (SIRI) is just bobbing around in a channel. I am looking for a spot to sell some more calls against my long LEAPS calls.
Have a wonderful weekend.
Bill
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