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Strategies & Market Trends : Gersh's Option trades

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To: Mark Johnson who wrote (612)6/12/2006 10:33:22 PM
From: Mark Johnson  Read Replies (1) of 652
 
wow, this thread really died.

ok, i shorted the vg june and july calls. in my opinion, vg is not going anywhere but down. too much competition. vg also announced a price cut for new customers. i think vg may hit $5 in January of 2007. street.com article noted that after the share lock up expires in early 07 the company could sell lots of shares. i may short the oct and january 15 calls and maybe buy puts. hoping for a bounce up in the stock.

i am buying goog shares before the next earnings announcement.
i think they will report earnings of between $2.50 and $2.60+ a share in july of 2006. If you look at Goog's web site they are hiring sales people left and right. I think they will earn $15+ a share next year. as we move in to 2007 analysts will start to look at 2008 earnings of around $20+ a share (my estimate). If I am wrong, I bought puts against the stock and will sell calls against my position if the stock drops after earnings. if we hit a severe economic slowdown, the shares of goog could go down further. I still think goog will hit $500 to $600 + by year end given a stable economic environment.
housing stocks are doing terrible, not a good sign for the economy.

if any one out there has some good trades, i would like to see them. thanks in advance !!!!
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