Thursday, March 14, 2013

Sell KORS strangles

Sell KORS strangles Apr 50 puts, Apr 67.5 calls @58.0
A short strangle is a bet that a stock stays in a trading range. For Michael Kors there is chart support at 55 and lower, and resistance at the price of the recent secondary offering 61, and the recent high at 65.

The zombie bull takes the Dow to its 10th straight record high. It is a nervous ride as the zombie is not to be trusted. A correction is sure to happen, but timing the in and out is not easy. Higher highs are a virtual certainty when there is this kind of sustained strength and that remains the percentage play. The coffee shop comments from two different people with bearish views on the stock market, mentioned in earlier posts, also point to higher highs. I don't know anyone that is a giddy, caution-to-the-wind bull. The kind that are everywhere when major market tops occur.

April gets us to a the seasonally strong six months for bonds. Option premiums continue to be low almost across the board, so pickings are relatively slim for option sellers.

There was an article on Yahoo about gold crashing to $1000. That is constructive for gold bulls, but not worth hanging a hat on without more indicators to back it. I haven't seen any gold permabulls that have thrown in the towel, or that have sold most of their gold to buy stocks and chase performance.

Net neutral APC KORS
expiring longs MON QCOM

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