Email – #405
Welcome to all of the new members who have joined the 400 Report. I am at the Orlando Airport right now waiting to board my flight. I wanted to send a quick note about the strength in two of our holdings this morning. (For new subscribers, this is just for informational purposes right now).
Microsoft (Nasdaq: MSFT) reported blow-out numbers for its last quarter. The shares are moving higher this morning. I expect them to move much higher in the weeks ahead barring a market meltdown. Our LEAP spread is up close to 50% and I expect to fully realize our triple-digit potential from this pick as MSFT guided higher for the rest of the year. And with all that cash, there may be another surprise coming from Redmond in the form of a special dividend – which should help our cause.
Sun Microsystems (Nasdaq: JAVA) also reported stellar numbers, with profits doubling year over year. Sun is reporting strong growth in all sectors.
In other news, our holding in Fifth Third Bancorp (Nasdaq: FITB) January 2010 $30 calls (YJF-AF) is up almost 50% from our original entry price a few weeks ago – this looks like a prime candidate for a bull spread – with over two years left to go.
I will be issuing a new pick early next week – look out for it.
Karim
Current Portfoli
Company / Option
Option Symbol
Current Price
Comments
Bank of America
Jan. 2010 $55 calls
WBA AK
$1.70
Hold
Fifth Third Bancorp
Jan. 2010 $30 calls
YJF AF
$3.60
Hold
Viropharma
Jan. 09 $12.50 calls
ZCG AV
$1.50
Hold
American Eagle Outfitters
Jan. 2009 $30 calls
VXX AF
$1.75
Hold
Sun Microsystems
Jan. 2009 $5 calls
XOG AA
$0.42
Hold
Mylan Labs
Jan. 2010 $20 calls
WYQ AD
$1.50
Hold
Cirrus Logic
Jan. 2009 $10 calls
VUR AB
$0.10
Hold
Coeur D’Alene
Jan. 2009 $2.50
ZYB AZ
$2.45
Hold
Microsoft – bull spread
Jan. 2009 $32.50 call (bought)
Jan. 2009 $40 call (sold)
VMF AZ
VMF AH
$4.70
$1.35
Hold
Tenet Health. – bull spread
Jan. 2010 $5 call (bought)
Jan. 2009 $7.50 call (sold)
YTX AA
ONZ AU
$1.95
$0.50
Hold