following the stock market activities of Tom Denham

5 January 2011 Trades

I took advantage of market weakness while it lasted and entered a fair number of positions.

I started a 6-month subscription to Larry McMillan’s Strategy Zone. I worked through a section of naked put recommendations today. I adjusted the level and expiration of most of my entries, but found it pointed me to good opportunities.

Option sales
CISG Jan10Put $0.05
SWY Jan19Put $0.05
SWY Jan19Put $0.05
MYGN Feb15Put $0.05
MDT Feb29Put $0.08
RTN Feb35Put $0.05
MON Feb37.50Put $0.05
T Feb24Put $0.05
IWM Feb58Put $0.05
DIN Mar17.50Put $0.05
NOK Apr7Put $0.05
AMZN Apr85Put $0.11
AEE Jun17.50Put $0.10
T Jul15Put $0.04
VZ Jul17.50Put $0.05
SWK Jul30Put $0.10
T Oct20Put $0.27
SYY Jan15Put $0.10

2 Responses to “5 January 2011 Trades”

  1. JWills says:

    Hope you had a great Christmas and all is well in APC land. Congrats on finishing the year in impressive fashion with 11+%! If I had more time during the day I would definitely practice your method. If it ain’t broke… right!? I am in F, AMT and IGTE still and way long in C and BAC. C is making me a lot of money, BAC is getting back to even. F has broken out for me. AMT and IGTE are sideways. I may flip out of IGTE for OpenTable tomorrow and take the high multiple on a monentum play. I am also looking at POT, Alcoa and thinking about a good way to play oil.

  2. Tom Denham says:

    Christmas was good! Hope you guys have a great new year.

    Ford has been doing great and this past week was a beautiful pop. The unbroken length of the rise makes me nervous, but congratulations on being in.

    I would lose my nerve with AMT under 48.86, but like F, it could pop up soon (unless the market rally is finished).

    The reversal down in IGTE may be serious, but maybe you are already out. You mentioned coming out and that looks like a good move.

    I don’t trust banks, but both C and BAC appear to be in chart bases with reasonable upside potential.

    POT has the potential to rally persistently on the popularity of everything agriculture. It doesn’t fit my style at current levels, but it may keep rising.

    AA appears to be rising from a base. However, the industry sector worries me.

    When it comes to oil, I keep selling puts against big names like XOM, RDS.A, CVX, etc. I wish I had been selling closer to the money over the past few months given what has happened, but I don’t want to increase risk by getting too close to the money after a rise is underway.

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