Trade Alert: Fixed Happiness link and STX roll up
The link I used (which came straight from the “Share” on the video for the record) was broken. So here’s the correct link:
http://www.youtube.com/watch?v=PsihkFWDt3Y
Now then, one other thing to note. I’m “rolling up” my STX calls this morning. That means the same thing it meant as I explained it in the APOL puts “roll up” in last night’s chat:
I’ve been “rolling over” my APOL puts and I suggest you do the same with the put you bought on it. What “rolling over” means is that now that these higher-priced APOL puts we bought back when the stock was at its highs for $1 are going for $10, we sell them. Then you take the proceeds from that sell and you use a small part of it to buy a new put that is dated out into next year sometime and has a much lower strike price than the put you just sold did. So in this case if you originally bought at June $42 put when APOL was at $47 and you paid $1 for it, and now you’re selling it for $10, you would look to buy an APOL January 2013 put with a, say, $30 strike price on it. If the stock falls below $30, you’ll keep making big money. And if the stock rallies from here for some reason, you’ll have locked in your big gains from the original put you bought and now sold.
In other words, I’m selling my September STX calls with the $27 strikes that I’d bought for a buck or two when the stock was much lower. I’m selling them for more than $5 today. I’ll look to buy some cheaper longer-dated STX calls, say out into January of next year with the $35 strike prices for $2 or so each with a small part of the proceeds from the sell.
I’m just managing the money and maximizing our risk/reward with these strategies.
Now go get outside!
