Email – #423
Fifth Third Bancorp surprised everybody this morning by exceeding their earnings expectations. The shares are up more than 5% in a down market. But, more importantly, this news bodes well for our long-term options (YJF AF), which have 18 months before expiration. If you don’t own these options, buy them.
Mylan (NYSE: MYL) continues to show resurgence in share price and good news with several new approvals for generic drugs in the past few weeks. Continue holding your January 2010 $20 calls (WYQ-AD) and buy them if you don’t own them.
I am eagerly awaiting numbers from Unisys (NYSE: UIS) due out very soon. The shares have rallied nicely and our options are nicely in the money with lots of time left to go. The price is no longer in our buy range.
Yesterday’s weakness in the market should have allowed you to get filled on your Blackstone (NYSE: BX) position if you did not get filled after the initial recommendation – recall that the shares took off right after our pick. If not, then don’t chase the options. This is a very volatile market and down days are bound to occur. Always observe the buy limits. In the case of the Blackstone January 2010 $25 calls (KJL-AE) our limit price is $2.80.
Karim
Current Portfoli
Company / Option: Blackstone Group Jan. 2010 $25 calls
Option Symbol: KJL AE
Current Price: $2.90
Comments: Hold
Company / Option: Unisys Jan. 2010 $5 calls
Option Symbol: WUI AA
Current Price: $1.50
Comments: Hold
Company / Option: Pfizer Jan. 2010 $25 calls
Option Symbol: WPE AE
Current Price: $0.90
Comments: Hold
Company / Option: Bank of America Jan. 2010 $55 calls
Option Symbol: WBA AK
Current Price: $1.38
Comments: Hold
Company / Option: Fifth Third Bancorp Jan. 2010 $30 calls
Option Symbol: YJF AF
Current Price: $1.60
Comments: Hold
Company / Option: Sun Microsystems Jan. 2009 $5 calls
Option Symbol: XOG AA
Current Price: $0.19
Comments: Hold
Company / Option: Mylan Labs Jan. 2010 $20 calls
Option Symbol: WYQ AD
Current Price: $1.20
Comments: Hold
Company / Option: Cirrus Logic Jan. 2009 $10 calls
Option Symbol: VUR AB
Current Price: $0.30
Comments: Hold
Company / Option: Coeur D’Alene Jan. 2009 $2.50 calls
Option Symbol: ZYB AZ
Current Price: $1.40
Comments: Hold
Company / Option: General Electric – bull spread
Jan. 2010 $35 calls (bought)
Jan. 2010 $45 calls (sold)
Option Symbol: WGE AG
Option Symbol: WGE AI
Current Price: $3.10
Current Price: $0.95
Comments: Hold
Company / Option: Microsoft – bull spread
Jan. 2009 $32.50 call(bought)
Jan. 2009 $40 call (sold)
Option Symbol: VMF AZ
Option Symbol: VMF AH
Current Price: $2.05
Current Price: $0.38
Comments: Hold
Company / Option: Tenet Healthcare – bull spread
Jan. 2010 $5 call (bought)
Jan. 2009 $7.50 call (sold)
Option Symbol: YTX AA
Option Symbol: ONZ AU
Current Price: $1.90
Current Price: $0.50
Comments: Hold