The LEAPS Option Trader
105 W. Monument Street
Baltimore, MD 21201
Friday, April 15, 2005
Email – #243
** Coming Through In a Tough Market
GE reported excellent earnings today – as we expected. Our calls are moving up nicely.
Also as I expected, money is now moving back into the higher-quality stocks that have predictable earnings flow. I believe that GE will continue to experience inflows in the coming months. Fortunately, we have A LOT OF MONTHS left on this one.
The market looks shaky, and it is important to note that we will see a lot of volatility in coming months. Our LEAPS will be subject to even more volatility, as is their nature. However, at times like this I feel more comfortable having fewer dollars at risk then owning stocks outright.
On another note, our Daimler Chrysler puts (VLN MH) are up to $5 on the offer. We are up 20% on this position. I really don’t want to revisit the $3s again so I am moving our sell stop to $4.40 to make sure we make a profit on this one. This means that you should have a MENTAL STOP in at $4.40.
Again, I will be in China over the next couple of weeks… but I will not be out of touch.
Regards,
Karim Rahemtulla
Bio:
Karim Rahemtulla is the former Investment Director of The Oxford Club. The editor of The Smart Options E-Report, The Income Trader – A Covered Call Strategy and The LEAPS Option Trader, Karim is also a regular contributor to The Oxford Club Communiqué. His highly successful trading systems use covered calls and LEAPS to boost returns on blue chip stocks, and during the bear markets of 2000 and 2001, his picks outperformed the major market averages. Educated in England, Canada and the U.S. and fluent in several languages, Karim travels the world to find the best investment opportunities for our members.
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