Thursday, July 11, 2013

Buy GDX Rebalance APC LGF (sell puts)

Sell LGF Aug 28 puts @31.9
Sell APC Aug 77.5 puts @89.7

I add a third layer of August puts on Lions Gate. As the stock moves up, the short strangle becomes a net short position. There is an earnings report second week of August. Similar deal with Anadarko Petroleum. I sell puts to rebalance a short strangle, and there are earnings in August.

Elsewhere, other short calls are taking on water as the stock market moves back to record highs on SPY. I lucked into today's move on GLD, selling puts late yesterday, which are down 60% in early trade. Some snarks might bank it, and report a 60% one-day gain on that. However, the margin requirement is large, so it is closer to 1% based on the capital required to make the trade. Commissions take another significant chunk out.

/edit to add: I sell GDX Sep 20 puts @24.9
Why today? There was an article on Yahoo finance saying to sell GDX on this up day. I don't know how long the link will remain, on the article "Dump the Gold Miners."
>> the article ends with this bit:
If you've been lugging around the GDX today is your chance to hit the sell button and look for better investments. At last count there are roughly 15,000 publicly traded companies in the world. At least 14,900 of them have better prospects than the GDX.

To that I can say, wow, 14900 out of 15000 will out perform GDX? When someone writes something like that, they are likely to be eating some crow.



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