While CELG was trading at $50.84 I sold to open two CELG December 50 naked puts (LQHXJ) for $2.55 each and received $498.50 after commissions. I sold within a couple of cents from CELG’s low of the morning. If that support holds is yet to be seen. I’m long 200 shares of Celgene Corp (CELG) already and I’ve sold CELG December 55 covered calls, so at least one of these will finish out of the money. I’m hoping for both to finish out of the money with CELG closing close to the upper $34 range at December option expiration to let me place the same trade again for January.
Jim Cramer spoke about CELG a couple of nights ago. I don’t watch him as often as I used to, but thought he made some valid points on why CELG was a buy. I put my limit order in to sell about $0.50 higher than it was yesterday morning and still have it hit out of the money. Based on the chart I could see CELG go as low as $45, but think it would rally pretty hard off of that level. Yesterday and today’s drop seems to be in sympathy with the rest of the market. Drug companies shouldn’t be affected by low jobs numbers. You never know, maybe investors are selling CELG to cover margin calls due to other losses. Whatever the real reason, I don’t think it’s based on true CELG fundamentals.
Speaking of jobs numbers, I was expecting it to be lower than the economists estimates, but hoped it wouldn’t be as bad as it was. I expect those numbers to only get worse in the next few months. Once we see a turn/surprise to the upside it’ll be time to put all the chips back on the table because soon after that we should see housing numbers improve too. I’ve been tempted to sell more of my long positions before that happens since I don’t see it happening for a few months, if not longer, but I think emotional investing is keeping me clinging to some of my losers. Maybe I’ll get over that before long, but haven’t taken the time to research like I should.
My computer at home has been “sick” all week, so I’m posting from work again which means I will continue to have fewer posts and do less research until I can get it to work again. At least I still have work to come to.