Trade Alert – One tranche of call buys and one small tranche of call sells
OMG, have you heard about the fiscal-cliff? Oh, wait that was last month’s crisis and last December’s crisis and also December 2010’s crisis.
I mean…holy moly, are you aware that Greece is having problems with their banks and sovereign debt? Hmm, my bad. That was last year’s repeated headline crisis and was also a repeat customer panicker from 2008 to 2011. Wonder if we’ll hear pundits tell us that we should be cautious while Greece is in trouble in 2013.
So…have you read about Euro-debt crisis? Oh darn it. See above paragraph. Well, there’s always the commercial real estate market’s impending collapse. Oh wait, I bet most of you don’t ever remember that scare.
We might see the corporate economy’s margins and earnings peak in the next few quarters and we’ll want to be much more hedged and much less long than we have been when that earnings cycle turns. It won’t be because of any of the aforementioned reasons and it will be because the US’s own debt crisis will hit when we have to service (or fully monetize) $20 trillion of national debt if our own rates ever head back towards any historical norm.
Let’s stick with the game plan, as has been so profitable over our careers. So, at any rate, I’m buying a tranche of FIO calls dated out into June next year or later with strike prices around $22-25 or so.
Other than that, did you see Facebook continue its ascent? I’m going to smell a small fraction, not even a full tranche of my FB calls, the ones dated closest with the lowest strike prices. It’s been a helluva run and one long-fought, hard-fought win so far on these suckers and I want to continue to lock in some gains as the stock hits new highs here.
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