Re FGII calls, I think you could buy some this morning and sell them later today for a little profit. I am holding off writing covered calls on my position until the stock is at about 40.
From rightline.net
What an amazing week it has been.ÿ Actually it wasn't even a whole week,
but rather four days and one of which was a slightly down day.ÿ The net
is the Drillers moved up around 15% as a sector in three trading days.ÿ I
admit that I was a bit bummed watching the rampant selling off of this
sector and knowing full well that the selling was both overdone and
unrealistic.ÿ Of any single sector out there, this one has to have some
of the best fundamentals going.ÿ The number of emails I received over the
past days telling me about the enormous gains subscribers have made this
week has made me feel great.ÿ Congratulations to everyone who has racked
up some great trades this past week.ÿ This group is still oversold and
well off its highs set back around November 1.ÿ Using one index, the Oil
& Gas/Well supply and Drilling services index, it has fallen from an
indexed high at 258, down to 200 Monday.ÿ It has rebounded to end the
week at 223.ÿ As you can see, there is a lot of room left to go for this
group to revisit the highs.ÿ Don't worry that you missed the move this
week for there is a lot of gains awaiting us.ÿ I don't recall being as
firmly convinced about any single group of stocks as I am the Drillers.ÿ
Literally, you could throw a dart at the list of Drillers and last week
ended up with a good gain.ÿ We will try to improve a bit on the dart
throwing approach by targeting a few of what we feel are the best of the
lot.ÿ For those of you who like lower priced stocks, there are a lot of
excellent ones here as well. Oil stocks were buoyed Friday by a rise in
crude prices, which climbed on news that Iraq will cease exporting to the
Western market.
Recall that I discussed some underlying forces that were working to
push the group higher, which are exactly the forces that sent them
down.ÿ A primary force is short covering which I presented Wednesday
night.
Wednesday, the Put call ratio of Open Interest (OI) was 1.37 and on
Friday, the put/call ratio had dropped to 1.26.
My note:
Again, you should get a two-week free trial to this newsletter. The above is only a part of the driller coverage from the most recent issue.
Glen -- You been talking to the resident Eye-talian too much. |
