A few trading ideas and a portfolio update

Guys, the day just slipped away from me. I’ve been trying to finish up those OccupyWallStreet posts with all my pictures, but it’s hard work uploading them all. Let’s get a lot of info into this post and I’ll be back later.

First, I’ve raised about 30-40% cash now, up from having been more than 100% net long a few weeks ago near the bottoms. I’ve also got a lot of hedges/puts on of late which brings my net long exposure down even further and I’m now less than 50% net long or so for the first time since I’ve started TradingWithCody.com.  I am just catching my breath, locking in the huge profits we’ve got for the year and letting things play out a little bit for now.

That said, I’ve done three small earnings trades:

I bought some Akamai calls dated out early next year out of the money, above $25 strike prices.

I bought some BIDU puts. I think the highflyers are just getting punished so badly post-earnings that unless BIDU reports a blow out, it’s likely got some more downside near-term.

I bought some GMCR calls. I think GMCR is in trouble and if the great David Einhorn says its a fraud, I believe him. But that doesn’t mean the stock won’t pop tomorrow if the earnings come in okay.  That is, I think GMCR is likely a great long-term short, but that it’s probably a better long than short into tomorrow’s earnings report, as the stock’s been crushed and crushed and today is down again on fraud concerns. The fraud concerns are probably valid if I had to guess, but I think that’s not what will drive the stock tomorrow.  We’ll see.

Tread lightly on all earnings trades like these. You know that I do. Obviously I’m treading VERY LIGHTLY right now with my portfolio bought down and as balanced as it is right now.