Not a recommendation, but covered calls on SFE and TLAB might be worth a look. Technical considerations: market has had quite a run the past month. TLAB is at the high end of historic valuation parameters. Todays decline is on fairly high volume. Reminds me of app. 16 mo. ago when CATP was near highs, co. reported good earnings, but there was immediate concern about the future, and the stock had a very high volume multi-point sell-off. A bad sigh and the stock action correctly anticipated future company trouble. Now this is not the same, as the volume is not as high, and correctly or not, I have a lot of confidence in TLAB management to continue to deliver. However, enough technical similarities, combined with valuation, and stochastic sell, to make me reluctantly decide to sell the Aug. 70 covered call. Have no intention of letting it get called and will buy back if need be. Just a hedge. SFE also stochastic sell, but volume nothing to worry about. More of a general market overbought, internets continuing under-performance, and the fact that SFE calls are quite rich. Aug 75s were $3 1/8 bid a few min. ago. Will probably but not certainly buy these back if need be...sold against trading position, not core LT holding. Again, maybe this is just justified profit taking in recently strong stocks and everything is fine, but felt a slight hedge was warranted. Others might disagree, and I wouldn't argue. Mike
|
