Sell
Apr APC 77.5 puts @86.9
I
rebalance my Anadarko Petroleum position back to net long. APC is up
on news of oil from a well in the Gulf of Mexico. Oops, even before I can type all of this APC has dipped to 86.2, so a poor entry.
The
news dominating the stock market is from Cyprus. There is also
possible Fed news today. April is a long period option month, because
the third Friday comes a bit later in the month. There are quite a
few companies that will report earnings before April expiration. All
of these factors mean there is no hurry to sell premium. I am
watching and waiting. The other shoe might be some bank runs on
rumors in other Euro countries.
Cyprus
is too small to mean anything, but if one of the bigger countries
destabilizes it can be trouble. Confidence is a fragile thing. The
drum beat of fear is strong. It almost seems like that is what is
desired to scare people as much as possible. Don't give in to fear.
Act rationally, look at possibilities and probabilities, Don't invest
on the 1% or less chance. I prefer to play the 80% or 90% chance and
get the small rewards.
Long
BA BRKB IWM LGF PG SPY
Net
long APC KORS
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