I took a break from writing for almost a year. Lets put it this way, I was involved in a project (extending my comfort zone) which was of higher priority & it totally consumed me. Now that the project has taken off, I have alittle more time to do this. In any case, the trading continues just minus the documentation.
For the last 12 months I have been capitalising on the market's sideways to cautious upward trend with covered call plays reaping profits(30%-40%) for all my clients (small funds). It appears that this trend may continue well into rest of 2010 but of course one should still exercise caution & care as with any strategy and minimise risk. Currently these are the positions I have:
STLD: Bought stock at $17.80, Sold the Apr 18 Call for $0.5
ACH: Bought stock at $26, Sold the Apr 26 Call for $1.0
GG: Bought stock at $38, Sold the Apr 40 Call for $0.95
By the way, I was caught by surprise about the announcement by ACH on their overall dismal performance for 2009 over the weekend. This has been factored into the share price & it appears that investors are looking beyond that & the recent Rio Tinto-Chalco deal + overall increase in Aluminium prices or some strong invisible force in the background lended some support to the stock. The following Monday, ACH rose by 1.51% at the close. I am watching this one closely.
Monday, March 29, 2010
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