Buy write.

Buy write did not work in this market.
It will work in normal condition.

Today day traded SPY bought at 87.73 and stopped out at 88.70. I put this since I have
to step out for a while. Then it ran up to 91.75. Too bad missed another huge gain.

Buy write and dividend.

It looks very attractive to buy a stock and write option for companies like FRO which pays
hefty dividend in the range of $2-$5.

If FRO trades at 60 and call option for strike price of $35 would be around $25 and it looks
like there is very little chance that the FRO would fall to 35 and you can collect dividend of $3
which is almost 10% of your cost for a month. Sounds very good and there is only 0.01% chance
that FRO will hit 35. This sounds too good to be true.

So what is the catch here?

If the dividend is cash the option price will not be adjusted. The dividend goes to the stock
holder and option holder will not get any dividend but the chances are the stock price will
trade lower by the amount of dividend. So why would the option holder will hold the option
and let you enjoy the dividend. So this what happens. On the ex-dividend date the stock
will be assigned to the option holder.

There is no free money here. Do not play this game for a company like FRO. But it will work
for companies which pays around 5% dividend.

OSIP, ACM, COG, SWN, CAG, SCS

Buy OSIP around 41 and stop loss at 37.
Buy ACM on pullback to 30.75 and stop loss at 29.5.
Buy COG at 65 and stop loss at 63
Buy SWN 46.5 and stop loss at 43.0

Short CAG at 20.30 and stop loss at 21.0
Short SCS at 10.25 and stop loss at 10.80

IHS, COHR

Buy IHS at 70.5 and stop loss at 65
ACM 33 stop loss at 30.5 or 30

Short COHR at 30.5 and stop loss at 32.00
short mil 69 and stop loss at 70.5
short cwt at around 33-32 wait couple of days and stop loss at 34

PBR, RAH

PBR buy at 68.50. Stop loss at 66.00
SLAB buy at 38.2. stop loss at 36.00
JLB buy at 16.6 stop loss at 15.00

BMRN

Short BMRN at 30.00 and stop loss 32.00
Short FDX at 80 stop loss 83.00

Buy pwr 34: stop loss at 32.50
Buy cmed 43: stop loss at 39.00
Buy

ACS

Buy ACS 56.5 and stop loss at 54.


Short:
IVGN at 38.25 and put stop loss at 40.05.
CYN at 43.0 and put stop loss at 46.00.

NT, XME...

Buy NT at 8.6 and stop loss at 7.6.
Buy XME at 89.5 and stop loss at 86.5.

Short MCHP at 31.30 and stop loss at 32.50.
Short HRS at 55.65 and stop loss at 58.00.

HAS

HAS - toy company has good earnings/growth. Buy it around 37 and stop loss at 34.

FCX, JOYG & WHR

WHR buy at 72 and sell at 90.
JOYG buy at 80
FCX buy around 113 and stop loss at 109.

DD, TRN

Buy DD at 47.95 and stop loss 46.5
Buy TRN at 39.80 stop loss at 36.5
Buy DE at 80 and stop loss at 78 and sell at 93.5
Buy APA 136.0 and stop loss at 124.0

Stocks I saw on internet.

ALV is good one in auto but trend is down. Will buy when trend changes wait and buy
when it breaks out of resistance at 54.

CPRT : is good auto internet play. trend is up and buy point 43.5.

CXO : is 10% above buy point 23.30 now. Still a good buy. Uptrend stock.

CMED: Trend is changing to downward trend. Wait and short.

AUY & AEM : uptrend stock. Buy now and stop loss at 10%.

WDC

Wait and buy WDC. If it start moving above 32.

Buy
DE if it goes above 93.
CTRP if it crosses 63 with heavy volume or buy some at 58.

APOL

APOL - quarterly revenue is 780mln vs expected 750mln.

Revenue 780mln
Earning 139mln (83cents/share) vs last year 113mln (65cents/share)
and estimate was 73cents/share.

Other good stocks in this category are EDU, DVY, LTRE, CPLA.