Monday, April 21, 2008

not much happening

Third Friday of every month is options expiry for that month, which means the next week the option premium's are once again quite high. i.e. last week a 150 call on aapl, would be quite near aapl's real price, however, now that we have more time till May expiry those same calls will price $3-4 or even more for the extra time that you get.
well i had been playing so close to the money that i wanted to take it easy on this first day and just watch the tape. plus there was no real volatility. i tried to trade, but i am getting better now and i try not to force it. 2 other reasons were that this is earnings week and especially in these volatile times, that's doubly dangerous. i don't play earnings, things can move too much either way and you can lose big. that's gambling, i like things to be nice and quiet. do it the ninja assasin way.
that said, i did pick up some National City Corporation (NCC), Jan 2009 options. I was conflicted about this, but i was only staking $2K on it, and it was beat down 26% and hell they didn't even lose that much money + raised $7 billion, but the lollipop deal on that capital was very nice. Some good old Merrill boys got a chunk of that. 8% convertible at a price of $5. that's how the rich become richer. that was on top of slashing dividends to 1 cent. I'll put this one away in my vault along with my 2009 and 2010 Blockbuster (BBI) calls, bought May 2007, which are in the red by the way.
I was looking at some financials and i noticed that Wachovia (WB) had bounced back nicely. Remember, I had bought it last week at 25, May 2007 calls and sold it 2 days later for a 20 cent profit. Well, the next day it went up a dollar and another dollar the day after. I'm telling you Financials are at death's door, they really are very good bargains out there. Big banks are very stable and they are gonna mint coin some time in the future, probably sooner than later.