Wednesday, February 29, 2012

Buy AXP (sell puts)

Buy AXP via selling Apr 47 puts AXP@53.6
I placed a limit order yesterday and didn't get filled. I took a worse price today. AXP made a new high a couple of days ago, breaking out from a base formation. AXP is one of Berkshire's long term core positions which endorses the fundamentals.

Elsewhere AAPL continues it run, and PCLN (Priceline) moved up sharply on earnings. I have been watching PCLN but the relatively wide spreads on the options kept me away. Add some more to the woulda, coulda, shoulda file. Stock market keeps moving higher. Silver has been the star of this year, now up 30% since 12/31/11.

A side note about the double leverage ETFs. I wrote about the negative of the decay effect. I did not mention that the leveraged ETFs stay at their full margin level. For example if silver starts at $30 and moves to $45, an investor on margin has to buy more to stay at full margin, but a position in AGQ stays at full double leverage all the time. Again, these move too fast for my temperament and trading style, but others are making huge money.

* short GDX
* delta is near zero on this position

No comments: