[Weekend Summary]
Dear Member:
A big down day on rising oil and a disappointing employment report culminated a down week for the major averages. Though there has been talk about an oil bubble, it certainly did nothing to slow the upward speculation in the commodity. The Nasdaq Composite retreated to stop at the uptrend line that began in March while the S&P 500 and the Dow each broke down through recent support. Nothing particularly positive emerged for the bulls this week although the large losses on the major averages with high volume may be signaling a capitulation. We can only wait to see and Monday will be a day to watch.
In the face of these circumstances, I adjusted some of my spreads. In one instance, I sold the Jan 25 calls on Citigroup (C) against my long Jan '10 20 calls. The short position has already shown significant profit. I also adjusted the put spread on Cognizant Tech Sol (CTSH)by buying to close the short leg and capturing a 45 cent a share profit before commissions while letting the long Jan 35 puts regain some ground. I also sold the Q2 Jun 145 calls on SPY against my long Dec position and that short leg is currently profitable as well.
As a result of Stec Inc's jump on Wednesday, the Nov 12.50 straddle is currently in the unrealized profit column.
I added a position by going long the Jan '10 17.50 calls on Knight Capital Group (NITE) and with lots of time, I can either ride an upward move or sell other calls against the position as a covered play to bring in income.
Sirius Satellite Radio (SIRI) was essentially flat for the week so I had little to do there.
Sincerely,
Bill Kraft
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