Trade for 11/14/2008

Sold to Open 3 Nov22nd Puts on ISCA 25 Strike @ 1.00 even bringing into my account $300 before commissions. This stock has seem to have found a bottom here because I believe that it wasn't held by too many hedge funds so they don't have redemption selling pressure associated with many of the big names. Also they have come down from there 52 week high of $44.75. And even if some hedge funds do own it, I believe that they will sell higher priced stocks which make it easier to pay their clients the money, than to sell the now $25 Stock. The company is into speedway motor racing and "As of November 30, 2007, International Speedway owned and operated 13 motorsports facilities in the states of Florida, Alabama, Michigan, Virginia, California, Kansas, Arizona, Illinois, South Carolina, and New York". Here's my take on this stock and the reason that I wouldn't mind owning it. First from what I understand about 50% of their revenue is from media broadcasting for which they have locked in contracts over the next seven years or so. Secondly, they get extra revenue form ticket sales, concessions and merchandising. There is a lot of capital investment that goes into building these speedways so entrance into the market by other players, especially in this hard to borrow market seems minimal, limiting their exposure to competition coming in. Also, the fact that ticket sales may drop due to the recession is already priced into this stock, remember, I believe that 50% of its revenue is already locked in with media contracts. If tickets sales were to goto zero, which I don't believe will happen, there stock has already dropped by almost that much. Finally, I like the fact that their overhead on an on going basis is not that high, as they do not have to stock up on product to sell in order to make money, all they have to do is continue to have races and bring in money and because of that they have just started paying a dividend to give back some of the excess cash that they are bringing in. I also believe that they have been buying some of their stock back at these prices which would reduce the float and make each share worth more.

In an economy like this, when you have a stock that is starting to pay a dividend and is buying its stock back with its excess cash, I just have a hunch that this is a strong company that will not only hold on, but make money for years to come, recession or no recession.

So I sold the puts, only 3 of them only because of the GM scenario, where the market can get crushed if GM shuts down and unemployment skyrockets. So, I am only dipping my toes into these stocks and hopefully buying on the cheap on the way down. Will GM go bankrupt in the coming week? I'm not sure, but I hope not.

Their debt is minimal compared to their earnings, therefore I do not see them losing money and finally, there year over year quarterly earnings growth for last quarter was a staggering 307.60% according to Yahoo Finance Key Statistics on this company, yet they are only trading at 9.8% forward PE. I just can not help but be long term bullish on this company, but because you cannot fight the tape, I sold puts 0nly 3 one week out puts for $1.00 for only a total equaling 300 shares. If the GM debacle wasn't hanging over us, I would have put this position on for significantly more contracts.

Sold 10 Puts to Open UBS Nov 10's at .25 bring into my account $250 before commissions just because I think this stock is being oversold because it is a financial and it is a long term play for me. I liked it at 12.5, so I like it even more at 10. If I end up with 10,000 shares of UBS at an average price of 5-10 after this recession, I will be happy with that, but only time will tell if I can buy it that cheap, my only concern is that I hope that they don't own GE bonds.

Sold to Open 3 LLL Nov 60 Puts at .90 bring into my account before commisions $270 I like this company even when Obama come in as the President because
LLL according to what is Posted on Yahoo and is a better explanation than I can give is "L-3 Communications Holdings, Inc., through its subsidiaries, provides command, control, communications, intelligence, surveillance, and reconnaissance (C3ISR) systems; and aircraft modernization and maintenance, and government services primarily in the United States. Its C3ISR" In otherwords, they are the control center for the air force and even if Obama can get troops off the ground, it will just necessitate the need for this company. With a 52 week high of $115 this is another stock that I would only like to get my toes wet and buy more when it cheaper. So we'll first see if I get put this coming Friday.

Sold To Open 10 CB Dec 20th - 30 strike Puts at .50 bringing into my account $500 before commissions. I did this because I do not believe that I am going to be put the current month 40 puts that I have on, so I took in the premium for next moth at an even lower strike, so if I don;t end up owning this fine company at 40 this month, which I believe is true, maybe with all of the GM problems, I can get a chance to buy it at 30 next month. Time will tell.

I have a vote on the blog about posting my day trades - but since it's only been on the site one day and Only one person voted, I'm going to give a summery on my day trades rather then a detail trade by trade blow of what happened, but let me start by saying that I had no Losing Day trades today. And I only traded my Favorite Google front month Puts, not stock trades today.

Bought 85 Google 310 Puts at an Average Price of $7.367 and sold them at 7.80 for a profit, before commissions of $3680.00 So day trading was ok Today. Again, I like the google just out of the money contracts because of the volume, the volatility and the price all make it attractive for me to day trade. Again, I would have held the positions longer until the end of the day and that would have made me an extra $6500 approx, but that would have broken my own rules and that's a slippery slope. If I start breaking my own rules, then the trading becomes a free for all and I will end up losing in the long run, so I made a little less than I could have, but I won't ever lose a ton on a trade sticking to my rules. But you just can't help looking back and saying what if...?