Forbes had an article explaining why DRYS and other dry bulk shipping companies are a bad buy right now. Forbes seems to be under the belief that the economy will never pick up. I had to give DRYS some extra thought throughout the day yesterday. I’m long (own) 200 shares and short (sold) two naked puts and…
Month: October 2008
Added MON Call, Dumped JOYG Call
MON MON continues to bounce between $70 and $90. This morning it continued its upward swing it’s been on for a very short and steep stint. While MON was trading at $85.86, I sold to open one November 90 covered call (MONKU) at $5.00 and received $489.25 after commissions. This is my second sell trade on…
Sold More DRYS Calls
DryShips Inc (DRYS) has been a very poor investment for me. I got in too early and sold puts through a rookie typo when I tried to buy downside protection a few weeks ago. I corrected that mistake within 10 minutes for a $100 loss, but never went back in to buy new puts. DRYS…
Sold Extra AA Calls
While AA was trading at $9.36 this morning I sold four AA November 12.50 calls (AAKA) at $0.36 and received $131.00 after commissions. My cost is much much higher than this strike, but I’m willing to get out of AA at $12.50 if it happens to rally in the next three weeks before options expiration. …
State of Economy – Car Dealers Shutting Down
Here’s an interesting article on CNN.com’s site that I almost had for MyTradersJournal.com. It’s written by a friend of the family who works at CNN, Paul Varian. He sent me his story via email and said that he was sending it to the AC/360 team also in case they were interested. He gave me permission…
Dow Jones Industrial Average Chart ($DJI) Chart – October 24, 2008
Today I charted the Dow Jones Industrial Average daily price movement for the past couple of months. In red I circled what could be the bearish view of where the Dow could move next. It follows the lower trend line of lower lows and might have a good case for dropping further depending on which…
Option Trades on FCX, SSO & USO
FCX I didn’t even know this one hit yesterday until I was checking something else this morning. While FCX was trading at $26.27 I bought to close two FCX November 40 covered calls (FCXKH) for $0.50 each and paid $111.49 with commissions. I’m expecting FCX to come back some and want to have room to sell…
Closed MON Covered Call and Sold a New Naked Put
Two days ago I sold covered calls on MON on top of the 100 shares I own (long). Today I bought those calls back for a profit. While MON was trading at $79.93 a few minutes after opening this morning I bought to close my MON November 90 covered call (MONKU) for $3.20 and paid…
Sold New DIA Puts
With the markets taking another dive today I bought my original naked puts back for a profit this morning since I expected the fall to continue through the day and now that it’s down deeper I decided to get back in at a lower strike. I do not claim this is a bottom, but do think I am…