Chat Transcript for Feb 29, 2012: My dad’s advice about gift horses, strategies for AAPL, APOL, and much more

Here’s the transcript of today’s chat. See you next week at 2pm EST at http://tradingwithcody.com/chat for more Q&A where you can ask me anything. Q. Cody, after reading your united states of Apple piece, I would like to buy more AAPL calls…what would you suggest??? A. hmm, I think you’ll see the strategy I’ll suggest [...]

Don’t forget to join me for this week’s chat session

Don’t forget to join me for this week’s chat session at 2pm EST today at http://tradingwithcody.com/chat. The markets pulled back after the Nazz3K, but have since stablized. No other trades for me today yet. Quiet before the storm? Will the storm take us higher or lower? 5% move coming? Just thinking out loud. See you at [...]

ZZ Top and Hondo Valley: Why you should never buy a small-cap penny stock

In general, the rule to investing and trading penny stocks (any stock trading at less than $5 is typically consider a “penny stock”) is: Don’t invest or trade penny stocks. Because they usually have such small market caps and so few shares outstanding in the markets, they are easily moved higher for the short-term, often [...]

Trade Alert: Nasdaq 3k and buying common stock in this flash maker

And there you have it — Nasdaq 3K. I’d written a few times in the last week that it seemed like the Nasdaq was being almost magnetically pulled to 3k, despite how arbitrary and meaningless such a round number actually is.  Boy, it just barely made it: NASDAQ Composite (^IXIC) 2,993.42  6.66(0.22%) 10:28AM EST Prev Close: 2,986.76 [...]

United States of Apple

I guess I’ll make the compulsory mention of Greece and the endless euro crisis to start this week’s letter. But let’s take a different tack this week. Comparing market capitalization to GDP is apples to oranges (please forgive me for that one) but as I pointed out before, back when Apple AAPL +1.84%  was about half the price [...]

Trade Alert: Update and strategy for our homerun Apollo trade

It really bugged me once when I was still in middle school and I saw Duke coach, Mike Krzyzewski say after his player made a last second shot to beat North Carolina and my favorite player Michael Jordan, say, “Sometimes it’s better to be lucky than good.” But then he went on to explain that [...]

The anti-Warren Buffett backlash and other must-reads for today

Here’s part of what every investor and trader should be thinking about today. Notes on the 2011 Berkshire Hathaway Annual Report, Part 1 and Warren Buffett, Mercenary and Matt Stoller: Warren Buffett Says “Hormones” Will Fix the Housing Crisis Talk about some backlash. Man, I’ve been pointing out the recently building anti-Apple-backlash, but there’s some real anti-Buffett backlash building out [...]

Latest positions with ratings for each stock

Good Monday morning to ya. Stocks are down fractionally from the multi-year highs they reached last week but are trying to turn green as the morning wears on. I added to the Apollo puts last week and I’m looking to add to my Sandisk position, either using just common or some longer-dated call options today. [...]

Diversifying your puts and an important reality check for an emailer

Two answers to two subscriber questions: Cody, I have APOL May 50 puts @ 4.45, down 54% now.  Is it better to double down on these or buy another strike of ITM May puts? Thanks, love the service. The short answer to your question (pun intended, get it? “Short” answer to a question about one [...]

Trade Alert: Nasdaq 3K Magnet and Buying some APOL puts

Boy that Nasdaq wants to get to 3k, doesn’t it? It’s just 1% away, and it’s just an arbitrary number, but it sure seems like a magnet for now. Trying to game the next 1% move in an index full of thousands of stocks isn’t a good idea though, so let’s not try. This morning, [...]

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