Monday, September 16, 2013

Buy GLD QCOM (sell puts)

Sell GLD Oct 111 puts @127.9
If an observer says that I am playing gold badly, that person is correct. I got whacked on the dip and am adding back long exposure on this relief rally. These puts are way out of the money and below the prior lows.

The stock market is ripping to the upside, and once again the big time bears, like the ones warning about a crash have egg on their faces, and excuses for their subscribers or losses in their accounts. The rally means I have less exposure going forward. It is more difficult to find new positions because option premiums are down and many stocks are extended to the upside.
/edit to add: buy QCOM via selling Oct 60 puts @68.3
Qualcomm announced a continuation of their stock buy back program. The premium is tiny, making this a tiny worm trade (fishing analogy, small fish, big fish, worms are too small to be called fish). However, 60 is far enough out of the money to give me some comfort.

Long BRKB EMN GE GDX IWM KORS LGF
Net long APC BA GLD SPY XRT

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