Sunday, February 10, 2008

Scuba Diving, Snowboarding, and Daytrading. Life is Good!

Well pythagoruz is taking some time for vacation and I just got back from mine, so I'll put up a couple of trade ideas, and hopefully we'll get a few ideas in the comments section too.

I'm all cash at the moment and looking for a couple of small positions, taking note of the fact that options expiry is this Friday. Looking at the upcoming earnings, I see KO reporting Wednesday and as the stock is trading off its highs I am tempted to go long this one. KO is one company that benefited from the weakening of the US dollar in 4th quarter of 2007. I'm also impressed by last weeks strength in PEP, on similar reasoning.

Analysts from various firms are dueling it out with upgrades and downgrades on beverage sector stocks, but I prefer short term trades for good reason, and never mind the long term.

I'm looking to buy the KO Feb $57.50 call, probably some time early Tuesday.

I see the housing stocks popped while I was gone. Emergency rate cuts can do that of course, but the recent earnings reports in that sector still supports the bear position. As positions go though, it's a crowded short. Covering of short positions probably explains much of the recent move in stocks like MDC.

The MDC Sept08 $35 put priced at $3.20/$3.50 has caught my eye. There is plenty of time for bad news to develop in the housing sector between now and then. But as I don't see a catalyst for a downside move in the near future, I'm keeping my powder dry for now.

That's one long, one short from me. So what are you trading, or looking at? Let's hear your ideas in the comments section, and maybe we'll see you in our daily chat.

Update: I bought the Feb KO $60 calls at the open, on good results from CCE.

6 comments:

pythagoruz said...

Nice to see you back posting, hope your trip went well. I am looking forward to seeing some pictures and a full report!

I like both of your trade ideas and they have both come in from recent highs/lows for good entries. Aside from the Friday candle, KO looks pretty good after it found support near that 200 dma.

And MDC, how could you not like shorting that stock all the way up here! I have some March 40p at about break even.

The internet connection appears to be pretty good here but I won't be around during market hours. I'll keep in touch via the blog. Btb keeps telling me he will post, but we'll see. Glad to see you back dude.

-py

betweenthebars said...

Well sorry about the ko not working out indigo. I suppose you can't will them all. Good job on the paragraph structure though, I do appreciate it.

betweenthebars said...

Will or win. Sometimes their one in the same when it comes to earnings reports. (2 meanings+1 spelling error= the same point) lol.

indigo-alien said...

It is sure annoying to have the right idea about earnings, but the stock just goes and does its own thing.

pythagoruz said...

Yeah, I didn't check into it in detail but looks like KO gapped up and has been getting sold ever since. We may be about to enter a period where nothing is safe and everything falls.

tooquiet said...

Bring it on and lets short/put like there's no tomorrow!