12/20/2010
NOK@$9.90
Buy 5 Jan 2012 7.5 Calls for $2.79
Sell 5 Jan 2011 10 Calls for $0.29
We’re adding 1/4 positions in both EMC and NOK. Our view is quite similar on both stocks. We’d like to add a larger position but the market has yet to correct as much as we were looking for it to last week. We were anticipating a mild correction and though the market has been a little weak, the supporters of it are out at key levels such as 124.00 in the SPYs just to make sure that this little rest doesn’t become a correction. With that we decided to add these positions for now with more to add later along with a few other stocks that were currenlty interested in as well. Both of these stocks are highly rated in our view on a fundamental basis and are also fairly safe in terms of their financials, if they were a little lower in price we would have probably done 1/2 a position but for now we’re content to get started with 1/4. The technicals of each aren’t negative but they both seem to be on the cusp of taking a breather as are so many other stocks. If they do correct to more attractive levels we’ll likely add at least another 1/4 position at that time.
1/19/2011
NOK@$9.57
Buy to Close 5 NOK Jan 2011 10 Calls for $0.29
Sell to Open 5 NOK Feb 2011 10 Calls for $0.65
We are rolling the NOK position because it has fallen off so we can breakeven on the short call while making money on the long Jan 2012 Call.
Buy to Close 5 of the Jan 2011 10 strike call for $0.29
Sell to Open 5 of the Feb 2011 10 Strike call for $0.65
There is a small profit in Jan 2012 options of about $0.20. The trend is still intact so we are going to sell the Feb calls on an even basis (1 to 1) to the Jan 2012 options.
For those of you that want to take this off completely, then you can close out both sides with a small profit of $0.20 or about 9% on risk. The market seems to be actually allowing a few stocks to really correct so taking profits at this juncture is probably not the worst course of action.
2/11/2011
NOK@$9.36
Buy to Close 5 NOK Feb 2011 10 Calls for $0.15
