Investors didn’t seem too happy with Joy Global (JOYG) after earnings, but that was short lived as JOYG started its comeback the next day and continued it today. I took the opportunity to sell a couple of October 40 naked puts (JQUVH) while JOYG was trading at 43.49. I received $268.50 after commissions.
I see support around 40 and hope it doesn’t go that low since earnings are over and its already taken its hit from that. I was somewhat hesitant to move on JOYG since it is in the same industry as CAT, but decided to move forward anyway. If the global economy holds, both of these companies should be fine. I also sold out-of-the-money which will shield me from a deeper pullback some.
If I was to chose between CAT and JOYG, I’d probably have to side with JOYG anyway. It has a lower p/e ratio, stronger growth and higher margins. I’m getting closer to fully invested again (200% of the value of the underlying stocks I’ve written options on) and will continue to push it further over the coming weeks.
My wife’s company is being sold and she’ll be out of work soon. My contract ends near the end of this year and I’ll likely be out of work then. We live well below our means, but not low enough for us to have no income aside from the $1600 average I bring in per month from my investments and the $55/mo I make from the ads that run on this blog. Our non-stock savings can carry us about six months, but I’d rather not burn through it. If we don’t find ideal jobs, we’ll be able to take something lower level, just to keep our heads above water as we stay thankful we are not big spenders.
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catching up on some posts, sorry don’t remember strike used in AAPL couple of days ago, but was ATM or close. I’m starting to like ATMs best. very glad no tragedy hit you regarding family in Greece. the market is better than bonds, as long as you don’t sell out in the down times i guess. of course, good luck in the lottery, sign me up for my cool 1000, but be careful how many people sign the blog, or you won’t have any money left. keep us posted as the months unfold about your employment. i hope it doesn’t pressure how you do your investing. k, got to go see how much money i can lose today, bye…
Thanks Kadena, I spoke to my cousin in Athens, Greece this morning. He corrected what we had heard earlier to say that none of our families houses have been burned, but that all of the farms are destroyed, including 300 olive trees.
Regarding my employment, I am starting to feel more agressive with my trades than I have been the past 2-3 months. I think after winning the (now $330 million) lottery tonight we’ll be OK.