Trade
Buy/write on BBY Best Buy
Buy the stock, sell the Jul 50 call (in-the-money)
Sell SHLD Sears/Kmart
Never let a profit turn into a loss, is a guideline that I use to help keep my morale up. Stock is getting hit, so even though fundamentals are sound, I am dumping.
Best Buy out with good earnings. 50 looks like a good level to be buying (chart). By selling the July 50 call, that brings my price below 50 if it dips. If it doesn't, I make a small profit.
Gold stocks starting to looking interesting. True Contrarian (link) has been bearish on metals and mining stocks during much of the rally earlier this year, has set this level on the gold bugs index as a possible buy point. For stock market bulls, his predictions of 7% yield on the SP500 are either terrifying or dismissed as idiotic. In any case, this fellow has had a good month being long bonds and short metals. The beginning of the year was not so good and he endured far more pain than I could have when his metals shorts were down 30% or more. Enduring that kind of loss is not a recipe for longetivity for traders. Investors, especially value investors sometimes will succeed by doing so, especially if they buy and sell in small increments.
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