Ravi,
I'm glad to hear that you have ASND calls. I have the July 55 calls currently and was able to sell my July 55 puts for 1.25, a little more than what I expected. I will hold these calls until ASND reaches the 62-63 level, at which point I will net roughly 3.50+ on my straddle position. Because time value will erode quickly in the final week before expiration I will look to close out my call position by Friday.
Other straddle candidates that look attractive to me are USRX, SUNW, INTC, and of course, IOMG, which has built a very strong base should make its pre-earnings run by early next week. The news of HWP shutting down its diskdrive unit is bullish for IOMG, SEG, IBM because it eliminates a competitor.
I have bought many Cabot stocks before being recommended by Cabot, including CKP, ESOL, and JLGI. The stocks usually run up significantly the day of his recommendation, at which point I am rushing to sell them. There usually is a "taint" on these stocks after Cabot is finished with them, even though they are very solid companies. Instead of straddles, I would look buy a heavy put position on his recommendations after the initial hype. I will stick to straddles on tech issues at this time.
I should mention that I picked up some AUG 55 puts on MOT at the end of the day. I feel it will come down to test support in the 51 range in the near future. I think I will be making some $$$ on this one, but this is just my opinion.
Regards |
