Email – #519
Three positions in our portfolio are doing quite well today on three upgrades from major brokerage firms.
Apple (AAPL-NASDAQ) was upgraded by Morgan Stanley. Their analyst made the same case I did a few weeks ago and came to the conclusion that APPL merits a $400 price tag if it executes its plan by 2012…
That’s about $40 higher than the upper end of our spread. I’ll take it!
Sprint (S-NYSE) was upgraded by Goldman Sachs to a BUY with a $6 target based on it increasing its customer base and retaining more of its old subscribers.
Finally, Citigroup (C-NYSE) was also upgraded to a BUY by Goldman Sachs based on increased global merger and acquisition activity as well as increased global loan growth activity. We own Citi for $0 after taking 100% profits by selling half our initial position.
Our positions in all three companies are good for another 600 days. And I feel pretty good about their prospects going forward. We will likely have to suffer in the near term from the fallout in Europe, but if things resume or if investors search out real value and momentum, we could be in for nice ride with this trifecta.
Karim
Current Portfolio:
Company / Option: Sprint(S) Jan. 2012 $5 call
Option Symbol: S120121C00005000
Current Price: $1.60
Comments: Hold.
Company / Option: Citigroup(C) Jan. 2012 $5 call
Option Symbol: WRV120121C00005000
Current Price: $0.84
Comments: Hold.
Company / Option: China ETF(FXI) – bear spread
Jan. 2012 $30 put (bought)
Jan. 2012 $25 put (sold)
Option Symbol: FXI120121P00030000
Option Symbol: FXI120121P00025000
Current Price: $4.45
Current Price: $2.87
Comments: Hold.
Company / Option: Apple(AAPL) – bull spread
Jan. 2012 $300 calls (bought)
Jan. 2012 $360 calls (sold)
Option Symbol: AAPL120121C00300000
Option Symbol: AAPL120121C00360000
Current Price: $37.53
Current Price: $21.30
Company / Option: US AIR(LCC) – bull spread
Jan. 2011 $7.50 calls (bought)
Jan. 2011 $10 calls (sold)
Option Symbol: ZTG110122C00007500
Option Symbol: ZTG110122C00010000
Current Price: $1.75
Current Price: $0.98
Company / Option: Yamana Gold(AUY) – bull spread
Jan. 2012 $12.50 calls (bought)
Jan. 2012 $15 calls (sold)
Option Symbol: WNZ120121C00012500
Option Symbol: WNZ120121C00015000
Current Price: $2.10
Current Price: $1.60
Company / Option: Dryships(DRYS) – bull spread
Jan. 2011 $7.50 call (bought)
Jan. 2011 $12.50 call (sold)
Option Symbol: ZDU110122C00007500
Option Symbol: ZDU110122C00012500
Current Price: $0.45
Current Price: $0.15
Comments: Hold.
Company / Option: Pulte Homes(PHM) – strangle
Jan. 2011 $7.50 put (bought)
Jan. 2011 $15 call (bought)
Option Symbol: OPN110122P00007500
Option Symbol: OPN110122C00015000
Current Price: $0.55
Current Price: $0.50
Comments: Hold.
Company / Option: United States Natural Gas(UNG) – bull spread
Jan. 2011 $20 call (bought)
Jan. 2011 $25 call (sold)
Option Symbol: ZZM110122C00020000
Option Symbol: ZZM110122C00025000
Current Price: $0.10
Current Price: $0.07
Comments: Hold.
Company / Option: Yamana Gold(AUY) – bull spread
Jan. 2011 $10 call (bought)
Dec. 2011 $12.50 call (sold)
Option Symbol: VPP110122C00010000
Option Symbol: VPP110122C00012500
Current Price: $1.89
Current Price: $0.95
Comments: Hold
Company / Option: Akamai(AKAM) – bull spread
Jan. 2011 $15 call (bought)
Dec. 2011 $20 call (sold)
Option Symbol: OMU110122C00015000
Option Symbol: OMU110122C00020000
Current Price: $23.21
Current Price: $19.90
Comments: Hold