Tuesday, June 18, 2013

Buy NSC XOP (sell puts)

Buy NSC via selling Jul 67.5 puts @77.1
Buy XOP via selling Jul 53 puts @61.5
Norfolk Southern and the Oil Exploration ETF were on my chart review from a couple of weeks ago. More of my so-called worm trades, premiums so slim that the fishing analogy is digging for worms, not actually trying to catch fish.

In a market full of extended stocks, there don't seem to be a lot of good choices. The analogies are the cleanest shirt in a closet full of dirty shirts, or the dog with the least fleas when they all seem to have them. That said, premium buying bears have been skewered yet again, as the market is near flat for the past month.

Long APC BA BRKB IWM LGF NSC PG XOP XRT
expiring HOT KORS NTAP SBUX
Net long SPY

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