>>>Sold the second quarter of my ENT position at an average of around $2.55 this morning.<<<<
Please accept a compliment from a grizzeled veteran on your trade, and consider some advice.
When there is a bad news sell-off such as ENT just experienced, there is always a bounce, and then some flopping in the bottom of the boat for a while. I got caught and rode it down. (I wish they had called me and let me know about the dividend cut before they did it.)
If you bought at the bottom and then sold recently, then my hat is off to you. I thionk that there will be a second buying opportunity.
The advice....
Options now trade against ENT with $2.50 strikes. I am considering trading calls against my long shares - because I think it will pull back.
Unlike you, I missed buying at the bottom, but by shorting some puts, I can get close.
Basically I am about to short a $2.50 straddle against ENT. It really won't be a straddle because I am long the stock. I will get some time premium from both sides if I do it.
Basically I think that you are looking here at:
1) the classic post sell-off dead cat bounce,
2) a stronger bounce because of the rising Loonie,
3) same because of rising crude,
4) same because everyone from China to Madagascar is buying the sandbox - except the US. We are buying a different kind of sandbox in the Middle East, but we are doing it on margin, and I think that we will get a big fat call soon.
5) same because we are on margin in our sandbox play, and the call will tank the buck even further. |
