Two Bear Stearns "Big Wigs" were arrested today following a "probe" for misconduct and financial improprieties.Question: Who is a bigger threat to capitalism...a couple of crooks like these guys or Karl Marx?
| Stock P=Put C=Call | Purch. Date | Purch. Price per share | Friday Close 6/20/ 2008 | Net Gain/Loss Previous Week | Net Gain/Loss Week Ending |
| BAC 1/30s P | | 3.00 | 5.75 | 40% | 92% |
| XLK 1/25s C | | 1.70 | 1.40 | (17.6%) | (17.6) |
| TRLG 10/22.5s P | | 3.20 | 2.55 | (20%) | (37.5) |
| COF 1/50s P | | 8.10 | 12.80 | 32% | 58% |
| PQ 10/20s C | | 2.60 | 5.90 | 92% | 127% |
| NCC 10/10s C | | 1.30 | .10 | (96%) | (96%) |
| NCC 10/8s P | | 1.55 | 3.20 | 106% | 106% |
| BAC 1/27.5 P | 6/12/08 | 3.15 | 4.30 | (3%) | 37% |
| COF 1/40s P | 6/12/08 | 6.00 | 7.10 | (8%) | 18% |
*Additions highlighted yellow.
**Liquidated positions blue.
Liquidated
1. What a difference a week makes! I started the week by watching PQ make a 35% improvement over last week's position. While it would have been nice to play the greed factor, I opted to liquidate this position. Later that afternoon, news broke that Oil dropped $6.00 a barrell, and I was feeling like one of the smartest guys around. However, later the call moved to 7.90 per share...
2. TRLG crossed an investment threshold which told me to take it like a man, and except the loss of 37.5%. While I do believe that TRLG will sink like the Titanic, obviously my timing was a bit off. I will continue to track this stock and look for another opportunity to short it.
Winners
After researching, and writing an article entitled "Credit Card Crash" last week, I upped my positions in COF and BAC. Last week, I was down 8% and 3% respectively. The gut check was telling me to increase my positions again looking for the TWEENER (in between play) on my positions. This would have been a COF 1/45 and a BAC all the way down to 25 (Since the middle of the tweener was already covered). But, I didn't. If and buts right? Regardless, both positions improved tremendously as oil, credit, and a special report on the amount of money moving on to credit cards was reported. I am still contemplating an increased position here.
Not with My Money MISTA LEE
After microscopic gains last week, Mr. Thomas Lee (not to be confused with Bruce) from J.P. Morgan is probably wearing a disguise kit...as every one is now in the red!!! Remember folks, he gets paid for losing people's money! I'm sure we can count on another big week of consumer spending... There was another "guru" who recommended Carnival Cruises and Royal Caribbean as the hot picks...I think that is a great idea as long as everyone uses their Capital One or Bank of America credit cards for the trip they "owe to themselves!"
XLF down 6% from original purchase price of 23.33
XLY down 5% from original purchase price of 29.70
XLE even though this one closed down...I'll give him a push...original purchase price 86.02
Iceberg spotted... Hopefully these guys have some life boats for their investors... Unfortunately, the captain rarely goes down with the ship on Wall Street.
1 comment:
Good luck....
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