Tuesday, June 19, 2012

Buy ALXN and BRKB (sell puts)

Buy ALXN via selling Aug 75 puts @98.0
ALXN Alexion Pharmaceuticals breaking out from base pattern today. Support at 85, then 80. This is another CANSLIM kind of stock, with a high PE and fast growth.

I also sold BRKB Aug 70 puts @82.5. Story is the same on Berkshire, stock buyback and multiple chart support levels below. Not much premium on these puts, but with the ongoing buy back it seems like a low risk play.

I also placed an order to sell strangles on LGF Lions Gate LGF@14.6, sell Aug 13 puts and sell Aug 16 calls, but it is not filled yet. If filled, I would still be net long. Chart resistance at the old highs of 16.19.

Elsewhere, European stocks rallying today. The fear was so thick, it seemed an obvious play, though I only took the one small position in the German ETF EWG. Gold option premiums came in a little, pushing my short strangle into green numbers, but premiums are still relatively high because of possible Fed news on Wednesday.

Net long IWM, SPY
Net short GLD

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