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Trade Alert and Latest Positions – Selling calls down, getting less aggressive

Cody Willard

Cody Willard

— 2 min read

Great time on the honeymoon, but long story short — 20 hours of plane delays to leave El Paso, lost luggage, flu-like symptoms almost the whole time we were gone, and lots of sleep, rest, relaxation and purification while in the rain forests of remote Costa Rica.

It’s always great to get back on US soil. I’m grateful that I’m grateful to be home. We got back at 2am last night and I’m still under the weather after a 22-hour no-sleep trek home to New Mexico, so I probably won’t be back full-speed til manana.

The broader markets are at all-time highs once again, which validates our having stayed steadily bullish and long once again. But, clearly the near-term markets are overbought, and I’m also, as you guys know, increasingly cautious on the global economies.

We added a couple new tech shorts before I left, with IBM and EWY (a Korean ETF that’s 1/4 comprised of Samsung) and I had also been actively trimming down the call options after the big runs we’ve had in the Amazon, Facebook, Sandisk, Linsday, Baidu and others in this new year, having bought those calls on weakness when the markets were panicking over the…what was it again, oh yea, the Fiscal Cliff.  Which means I’m less aggressively long than I you’ve probably become accustomed to. With Apple’s hit and so many of these other call options having kicked in, I’ve got more notional exposure to several of these positions than usual too.

I’m going to sell more calls that I’ve got  big profits in, in all of the above mentioned stocks today and let my common stock portfolio do the heavy lifting for the near-term.

Here’s a list of my latest positions in approximate order from largest to smallest. I give each stock a current rating from 1 to 10, 1 being “Get out of this position now!” and 10 being “Sell the farm, I’ve found a perfect investment” (there will never be a 10 rating, because there is no such thing as a perfect investment, of course). Anyway, here’s the list:

Longs –

  • Facebook (7)
  • Amazon (7)
  • Sandisk (7)
  • Fusion-IO (8)
  • Apple (8)
  • Google (7)
  • Lindsay (7)
  • Nuance (7)
  • Baidu (7)
  • Marvell (8)
  • F5 (7)
  • Qualcomm (7)
  • Broadcom (6)

Shorts –

  • Apollo (8)
  • EWY (9)
  • Dollar General (9)
  • Dollar Tree (8)
  • JPM (8)
  • LPS (8)
  • MS (7)
  • IBM (8)
  • GLD (3)

Binary Outcome Trade (a bet that the stock will either go up big or go down big in coming months) –

  • Long MSFT calls and puts – (6)

And in the meantime, please be sure to check out my completely revamped, rebuilt and improved AppConsumer.com. Search or browse our app reviews and “Best Apps Lists” or check out today’s “Featured Apps” or “Hot Apps” for every platform right from the home page.

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