Interesting day, with low volume in the market. I'll be honest, this light volume and this short week, means we could rip higher tomorrow. As for JAVA, I got smoked but the puts protected me greatly. I am down about $200 but I am holding both the stock and the puts. The rumor is that IBM may go hostile for them at $9.45 a share. The other story is that CSCO may step in and buy JAVA. Very interesting. If you are not in, its compelling at these levels, as long as you buy put protection.
As for today's trades, I bought CROX. I mean, its spring time, people need CROX shoes right? lol. I'll take a shot at it, given this tape. I also shorted the QID. Tech is on fire and if you don't want to do that, you can buy the QLD (2x long the nasdaq Qs) and get similar action. I like it at these levels. The FDO calls are ripping, huge winning so far and I believe we will get more buyers into the close tomorrow. If we dip below $33, I might buy some of the equity as well, and sell puts against it. I will NOT take a position in JOSB. We might squeeze higher but I think the trade is over.
Earnings may suck but I will say that the market is cheap on a fundamental basis, so investors may not sell into earnings, instead buy into earnings. The only short exposure I have is the FAZ (only 50 shares, cut half today at breakeven). I am feeling good about this tape, rather bullish, so lets hope for a big day tomorrow. Be back in the AM.
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