Monday, May 13, 2013

Buy BA PG (sell puts)

Buy BA via selling Jun 82.5 puts @95.0
Buy PG via selling Jun 70 puts @78.9

I add June positions for Boeing and Proctor and Gamble, as I continue to scale into a few June longs. Again, I am way out of the money on these put sales and the premiums are tiny. What I call the zombie bull continues to lurch forward. I have also seen the phrase, the most hated rally of all time. 
 
Small investors are adding to longs, but are still under invested in stocks. Money managers, especially hedge fund managers are way behind for calendar 2013 and are in a pickle. Buy the rally and perhaps get trapped at a top, continue to avoid stocks and the performance gap is getting wider with each passing month.

Elsewhere, my short strangle (short puts and calls) on LEN Lennar Homes is now in the money and causing me distress. For now I am staying.

Long BA BRKB IWM LGF PG WFC TSLA
Net long APC SPY
Net short LEN

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