02-06-2012, 07:56 PM
Even though I think we're due for a pullback, I bought a bunch more call options and call spreads today.
I think oil is going to do well regardless - either Iran will close Hormuz and send it through the roof, or the economy will continue to improve and so oil demand will increase. Also, if you look at the 2 year chart of USO, it tends to peak around April, as we build up to the summer driving season. So I bought some straight up USO $39 April calls, and also a bunch of $40/$41 April call spreads (cost $22 and pay $100 each). Also bought Haliburton $39/$40 April call spreads (cost $36, pay out $100 each).
http://finance.yahoo.com/echarts?s=USO+I...=undefined
Goldman Sachs also had a good write up on how Apple should be over $600 in a year, so as a way out bet I bought AAPL Jan 2013 $595/$600 call spreads (cost $65, pay out $500 each - a 769% return). That's why I like call spreads - very small downside risk, but big upside. Bought some spreads around $500 as well.
I think oil is going to do well regardless - either Iran will close Hormuz and send it through the roof, or the economy will continue to improve and so oil demand will increase. Also, if you look at the 2 year chart of USO, it tends to peak around April, as we build up to the summer driving season. So I bought some straight up USO $39 April calls, and also a bunch of $40/$41 April call spreads (cost $22 and pay $100 each). Also bought Haliburton $39/$40 April call spreads (cost $36, pay out $100 each).
http://finance.yahoo.com/echarts?s=USO+I...=undefined
Goldman Sachs also had a good write up on how Apple should be over $600 in a year, so as a way out bet I bought AAPL Jan 2013 $595/$600 call spreads (cost $65, pay out $500 each - a 769% return). That's why I like call spreads - very small downside risk, but big upside. Bought some spreads around $500 as well.
Ex SWG, L2, CoH, Wow, and War
Currently PvPing in the stock market
Currently PvPing in the stock market