Email – #463
Sanofi Aventis came out with strong earnings last week. The shares began to rally but in the end, the markets continued malaise took them right back down. The failure for the shares to perform in light of stronger-than-expected earnings does not bode well for the position. Sell your Sanofi leaps (WFK AF) and we will redeploy the capital elsewhere.
Pfizer basically shot itself in the foot as far as any short-term momentum for the shares. The chances of it meeting our strike are slim to none, and there is no momentum at all in the shares. So sell your Pfizer calls as well (WPE AE).
Mylan Labs on the other hand is really beginning to show signs of life and we have a good shot at recovering our cost in this one. They just reported excellent numbers and the upgrades are flowing in. We will continue holding Mylan and look to exit the position later this year.
Petrobras is moving up nicely and if we can get a nice pop in oil to the mid to upper $40s – and we have lots of time to do just that – we will make a solid profit on this play which is already making some money for us despite a difficult market. The same applies to Akamai which is solidly profitable for us after moving higher on a very strong earnings report.
Freeport continues to build a strong base in the mid $20s, which is good news for our position. This company has an extremely good opportunity to benefit from all the stimulus that will be flowing through the global system, and its conservative management team is doing the right things to position the company fiscally for any opportunities. Continue to hold this volatile position.
We sold out of our Yamana position/entered the spread at the right time. Gold is pulling back and looks to pull back to the $800s before resuming its inevitable rise. We will enter a new gold Leap when we see the price of gold sell off after this recent stellar run.
Karim
Current Portfolio:
Company / Option: US Steel Jan. 2011 $120 calls
Option Symbol: OUS AD
Current Price: $0.45
Comments: Hold.
Company / Option: Yamana Gold Jan. 2011 $11 calls
Option Symbol: VPP AB
Current Price: $2.80
Comments: Hold.
Company / Option: Powershares QQQ Trust Jan. 2010 $40 calls
Option Symbol: WD AN
Current Price: $0.61
Comments: Hold.
Company / Option: Mylan Labs Jan. 2010 $20 calls
Option Symbol: WYQ AD
Current Price: $0.46
Comments: Hold.
Company / Option: Freeport Copper & Gold – bull spread
Jan. 2011 $30 call (bought)
Jan. 2011 $50 call (sold)
Option Symbol: OBQ AF
Option Symbol: OBQ AJ
Current Price: $10.50
Current Price: $6.25
Comments: Hold
Company / Option: Akamai – bull spread
Jan. 2011 $15 call (bought)
Dec. 2010 $20 call (sold)
Option Symbol: OMU AC
Option Symbol: OMU AD
Current Price: $6.67
Current Price: $4.80
Comments: Hold
Company / Option: Petrobras – bull spread
Jan. 2011 $30 call (bought)
Dec. 2011 $45 call (sold)
Option Symbol: VDW AF
Option Symbol: VDW AI
Current Price: $8.10
Current Price: $4.55
Comments: Hold
Company / Option: Motorola – bull spread
Jan. 2010 $7.50 call (bought)
Dec. 2010 $10.00 call (sold)
Option Symbol: WMA AU
Option Symbol: WMA AB
Current Price: $0.22
Current Price: $0.10
Comments: Hold
