The Options Trader
105 W. Monument Street
Baltimore, MD 21201
Tuesday, May 04, 2004
Email – #168
** Take Profits on Tenet Healthcare
Tenet Healthcare (NYSE: THC) reported earnings today – the stock
has moved up over 10% in the past three weeks. Our options have
moved up over 30%, even though the market in general has been
heading down. As you might recall, we bought Tenet on the insider
buying that was going on in the shares.
However, insider buying notwithstanding, the outlook for Tenet is
not that great. We are up and we have significant short-term
gains. In light of the current uncertainty in the market I would
rather take profits now than hang around for any negative downward
move in Tenet shares.
Our other positions are doing well as a whole. We hedged our bets
on ALL of our positions just before the current mini-shock to the
S&P and NASDAQ. It has paid off well for us. We are up
significantly on all of our positions except for NOK and HPQ. Yet,
we have over 17 months to go for a recovery.
Last week Yellow, Lockheed and Chesapeake all chimed in with
better-than-expected numbers. And each company’s shares responded
positively, going against the general tone in the market. I
anticipate further gains in these positions.
For now, sell the Tenet January 2006 $12.50 calls (YTX-AV) at
current levels.
Regards,
Karim Rahemtulla
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Current Portfolio:
Company / Symbol Option: Tenet Healthcare/THC Jan 06 $12.50 calls
Symbol: YTX-AV
Date Purch: 3/31/04
Current Price: $3.60
Comment: Take profits!
Company / Symbol Option: Lockheed Mart./ LMT Jan 06 $55 call
Symbol: WLA-AK
Date Purch: 4/7/04
Current Price: $2.70
Comment: Hold. Sold call against Jan 06 $50 position.
Company / Symbol Option: Lockheed Mart./ LMT Jan 06 $50 calls
Symbol: WLA-AJ
Date Purch: 3/15/04
Current Price: $4.40
Comment: Hold. No trailing stop.
Company / Symbol Option: Yellow Freight /YELL Jan 06 $40 calls
Symbol: YBQ-AH
Date Purch: 4/7/04
Current Price: $4.20
Comment: Hold. Sold call against Jan 06 $35 position.
Company / Symbol Option: Yellow Freight /YELL Jan 06 $35 calls
Symbol: YBQ-AG
Date Purch: 3/10/04
Current Price: $6.25
Comment: Hold. No TS.
Company / Symbol Option: Placer Dome / PDG Sell Jan 06 $25 call
Symbol: YDI-AE
Date Purch: 4/1/04
Current Price: $1.05
Comment: Hold. Sold call against Jan 06 $20 position.
Company / Symbol Option: Placer Dome / PDG Jan 06 $20 call
Symbol: YDI-AD
Date Purch: 1/23/04
Current Price: $1.75
Comment: Hold. No TS.
Company / Symbol Option: Hewlett Pack. / HPQ Sell Jan. 06 $30 call
Symbol: WPW-AF
Date Purch: 2/3/04
Current Price: $0.80
Comment: Hold. Sold call against Jan 06 $25 position.
Company / Symbol Option: Hewlett Pack. / HPQ Jan 06 $25 call
Symbol: WPW-AE
Date Purch: 12/10/03
Current Price: $1.60
Comment: Hold. No TS.
Company / Symbol Option: Nokia / NOK Sell Jan 06 $30 call
Symbol: WIK-AF
Date Purch: 2/9/04
Current Price: $0.20
Comment: Hold. Sold call against Jan 06 $30 position.
Company / Symbol Option: Nokia / NOK Jan. 06 $22.50 call
Symbol: WIK-AX
Date Purch: 8/29/03
Current Price: $0.60
Hold. No TS.
Company / Symbol Option: Chesapeake En / CHK Sold Jan 06 $15 call
Symbol: WZY-AC
Date Purch: 11/6/03
Current Price: $2.25
Comment: Hold. Sold call against Jan 06 $12.50 position.
Company / Symbol Option: Chesapeake En / CHK Jan 06 $12.50 call
Symbol: WZY-AV
Date Purch: 7/28/03
Current Price: $3.40
Comment: Hold. No TS
Company / Symbol Option: S&P 500 MITT
Symbol: MCP
Date Purch: 7/18/03
Current Price: $10.21
Comment: Buy under $10. No TS
———————————————————-
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