My ITWO, TERN, and XLA were my only ups today. Rest took a huge breather.
I did buy some more GBLX leaps and bought some options on SE. It looks to be a temporarily unloved but good B2B firm with potential upside. Probably a double within 12 months based on its business and past trading history. I'm using a large number of ATM and just OTM calls in March and July to try to lever-up to a decent long position (probably ~5,000 shares). I have been watching it for a week or so, and saw some heavy (uncharacteristic) buying of March calls today. I thought that might be a precursor to a big move back towards old highs.
This is similar to my move in ICIX late last year, and early this year. I turned 200 contracts into 5,000 shares paid for with other peoples' money. Unfortunately, I was conservative and made that change too soon. If I had held out a bit longer, I probably could've had closer to 10,000 shares on my March ATM calls. ICIX calls activity spiked, similar to SE, on the day I bought in, and it took a few weeks to get moving, but it paid off well. I think that the key is to go for the strikes where the activity is.
I'll keep you posted on the SE, and let you know how it goes. It's not a gorilla play by any means, but I posted it here for the options discussion...
Regards,
LoF |
