Good Afternoon,
We have been saying the last few sessions that we feel as if this market was overbought. Today was a good example of how little it takes to drive the market down. This market is moving little with the news lately, a sure sign of complete indecision. That is why you really have to be able to take advantage of both sides of the markets in these uncertain times.
We made just one move in the market today. We took on a short position of 100 shares of Nike Inc. (NKE).Our sense was this market would most likely sell-off in the afternoon, so we wanted to capture a position that might have some downward momentum going into tomorrow’s earnings report. Along with shorting 100 shares we purchased a July 75 call option for protection. We limited our total exposure to 3.9% on this particular trade. With an earnings report tomorrow we thought better of taking too much of a bite on this trade. If we have a weak day on the stock tomorrow, a poor earnings report after hours may prove to be very profitable for us!
Limit your risk when you put on a trade. You will have ample opportunity and time to make plays.
Jos. A. Banks (JOSB) was our biggest loser today, but we aren’t too concerned about this stock. Before the sell-off in the overall market this position was up 3%. It will outperform going forward.
Of our final three stocks two of them we are short so the selling was beneficial to us.
What we would be hoping for tomorrow would be another day of selling. We would like to close a couple of our shorts and somewhat rebalance the portfolio. Either way, we will take advantage of these markets.
Have a nice evening and we’ll see you again before market opening!
June 2010 Recap
6/1/10: Sold short 100 shares Union Pacific@ $71.96
6/4/10: Bought to cover 100 shares Union Pacific @ $69.68
Protective Call Option: ($41)
Profit – $197
6/11/10: Sold short 100 shares MercadoLibre Inc.@ $57.50
6/11/10: Bought 1 June 57.50 call option
Profit: ($160)
6/2/10: Sold short 200 shares Thoratec Corp@ $44.00
6/4/10: Bought to cover 200 shares Thoratec Corp @ $42.70
Protective Call Option: + $300
Profit – $560
5/27/10: Sold short 200 shares Jinpan Intl Ltd @ $15.83
6/07/10: Bought to cover 200 shares Jinpan Intl Ltd @ $15.14
Profit – $138
5/25/10: Bought 100 shares ConocoPhillips @ $49.00
6/10/10: Sold 100 shares ConocoPhillips @ $52.57
Profit – $357
6/14/10: Sold short 100 shares Concur Technologies @ $43.60
6/14/10: Bought 1 June 45 call @ .25
Profit: ($165)
5/24/10: Bought 100 shares of Baidu @ $72.18
6/10/10: Sold 100 shares of Baidu @ $72.32
Profit – $14
5/20/10: Bought 200 shares Quest Software @ $18.75
6/10/10: Sold 200 shares of Quest Software @ $18.75
Profit – 0
6/7/10: Bought 100 shares Overstock.com @ $19.65
6/11/10: Sold 100 shares Overstock.com @ $21.66
Protective Call Option: ($140)
Profit – $61
6/4/10: Bought 100 shares of Valeant Pharmaceuticals Intl. @ $ 46.54
6/14/10: Sold 100 shares of Valeant Pharmaceuticals Intl. @ $47.50
Protective Put Option: ($85)
Profit – $11
Total June Profit to Date: $1013
TEN Exclusive: Portfolio Update – 6/22/10 is an article from: 
