john,
i see you and tom have been busy.
i like the things you have discussed.
i suggest we sell jan 70 puts on CNXT in addition to buying 40k worth of shares. the 70 puts were going for around 3 bucks when the stock was around 74. i'm sure it'll be lower when the market opens monday unless there's a gap down. in either case, the puts may expire worthless and we pocket the premium, or we get to buy the stock cheaper. CNXT should be in the trading and long term holding portfolio. let's just buy 500 shares for the trading portfolio, and 500 shares for the long term holding portfolio.
same strategy could be applied to RFMD. broke out friday. been basing and consolidating very nicely between 65-75 for a while after the last run up to 85. broke out nicely friday. again, RFMD could occupy a position in both trading and long term portfolio. 500 shares of RFMD in each of those two accounts would be nice. additionally, selling naked puts can either get us money to play with or we can have the opportunity to buy it cheaper.
i would use the naked puts in the long term portfolio as a way to generate more money and also as a way to add stocks we want for the long term at a little cheaper price if we can get it.
AMGN broke out recently and can be bought anytime for the long term portfolio. let's buy 25% of what we would eventually want at 11:30 on monday.
i understand the concept of paying up for the leaders. it's hard to do, but for a core holding where we buy 25% at a time, it becomes easier to accomplish. as we know, all the stocks will run up and down. we just have to be unemotional and buy on any decent dip on these mean MF's...-g-
GBLX is another one we should go ahead and add to our long term portfolio at this time. same strategy. buy 1000 shares and sell 10 naked puts. we don't have to sell the 10 naked puts for january. we can even generate more income from the premium if we sell february, april, or even july puts.
CRA is a tough one to buy because the genome companies have all gone bonkers recently. perhaps buy 200 shares for now and sell 3 june 185 puts. june 185 puts will probably get us about 3600 per contract, or about 10,800. the cost basis for our CRA in june would be 149/share if we were putted the stock, which would be a darn good price. it's such a good idea that i think i'll do it in my own account on monday..-g-
HLIT has been running between 78-95 for a bit. it was a little weak on friday. perhaps arbitrage players keeping the price down until the CUBE deal is done, but it's a long term hold. let's buy 500 shares on monday and ignore it.
JDSU should be bought, too. expensive, but it's the gorilla. buy 300 shares now for the long term portfolio and sell 3 june 150 puts for about 2300/contract. that'll generate $6900 and i doubt if we could ever own JDSU for 127 bucks (cost basis if putted the stock) again,,,unless, of course, BK hits. again, i like that idea so much, perhaps i'll do it on monday, too.
hashing through these ideas are giving me ideas to do in my own portfolios. thanks for thread.
that's enough money spent on my part. -g-
mike |
