Let’s do a quick run through of some of our biggest movers today…
Let’s do a quick run through of some of our biggest movers today.
Silver’s up 3% and gold’s up its apparently obligatory 1/2 of that move. I’m not doing anything in either one, as we’ve got some puts that we bought when these metals just started to break down at higher levels and that are now in the money and they give us upside on the downside and protection on the upside, if you follow what that logic. Point is, I’m not doing anything in these two positions right now but I’d probably add to the puts on a big rally in either.
Google was up nearly 3% but has lost some of that intraday momentum as the markets have cooled in late morning action. We’ve got some calls that we were buying lower (remember this?):
June 17, 2011 By Cody Willard
Google’s down 3% on the day and it’s another one that has the bulls writhing in pain just now. But then again, looking out six months, this company has some huge growth ahead of it, is trading much cheaper than the broader markets and has tons of loaded ammo behind it as its a favorite of the tech shorts once again. And on that note, I also just bought some slightly out-of-the-money Google calls with expiries six months out adding to an existing position. Stick with the play book, stay disclined. Especially when it’s painful.
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Cody again in the present. Google was at $485 when I wrote that. It’s now rallied $50 to $535. I’m holding the calls steady, but I also am long some common stock from previous purchases. That means, much like the Riverbed trade I explained Friday, I’m likely to take some of that common off the table here and let the calls give me upside and protect my downside.
And then there’s our by-far-largest-short position, LPS. Down nearly 5% again today after having tried to stabilize above $20 a share and my biggest question today is why the hell didn’t I buy some more puts on that thing Friday? I’m still looking to build this position up to profit if LPS faces the ugly destiny I expect is its future.
Let’s keep the pedal to the metal and the medal to the petal, ok?
