Hi Steve,
Many money managers are on edge because of so-so performance last year. I guess their jobs are on the line and they have their fingers on the exit button. The funds with TECD profits from the recent high are moving out trying to lock in those gains. But, they are sitting on new idle dollars that people are pouring into IRAs, 401Ks, etc. It's like a cash laundry. By dumping the stock now, they can buy back at lower prices later and start the process all over again.
Yesterday, TECD at $22 plus or minus was a bargain like one analyst said. The earnings and growth are still intact. It just the heat is on trying to shake out those with weak fortitude!
Relax, sell some TECD covered calls for some downward protection ( easy income). I covered three March calls yesterday and I'm turning right around offering to sell them again three calls for June $30s. Currently, with the TECD sharp price decrease and today's increase are selling for around 1 3/4 ( $175) each. That's $175 x 3 = $525. As time passes and the price goes up and down, I may be able to once again cover at a later date, keep the bulk of the $525, and for now use the money elsewhere to generate profits. Heck, I can pick up TECD calls and pocket the profits and use the money from that to cover the calls or just be called out anyway at $30.00. My cost basis is lower as a result of all the calls I sell on the gem of a stock!
It won't be long for the next earnings report! :-) |
