Tuesday, March 26, 2013

Buy APC LGF LEN WFC (sell puts)

Buy LGF (sell puts)
Buy LGF via selling May 21 puts @23.8
Lions Gate Entertainment continues its epic run up. I am reluctant to chase it, but am willing to take this low risk low reward position.

Buy LEN via selling May 36 puts @41.6
Lennar Homes had a good earnings report and then gave back its gain on that report. Support at 36.

Buy WFC via selling May 34 puts @37.2
Wells Fargo Bank has one of the cleanest balance sheets of major U.S. based banks. However it got hit with the other banks over Cyprus. Chart support at 34/35.

These are the best longs I could find. I still think it is too early to play the short side. There was blaring headline on the Marketwatch site predicting SP&500 1400, which would be 10% lower. It is always easy to sell fear. However, market tops are much more likely when the headline features a bull and a prediction of another easy 10% or more upside, rather than a sharp correction.

Later in the day, I sell some APC May 77.5 puts @88.9 to rebalance my complicated position in Anardarko Petroleum back to net long.

Net long APC KORS

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