Trades from 11/10/08

Sold 5 Puts to Open, Stock Symbol FLR Strike Price 30. Bringing in $125(before Commissions into my account).While Fluor is an engineering and infrastructure company, I believe that because it, with the rest of the market, has come way off of it highs can benefit from an Obama Presidency of building infrastructure to make work during what I consider the New Obama Dream Deal for Americans laborers. Plus the stock is currently trading at 42+, so either it withdraws another 12+ points in the next 12 days or I keep the money that I brought in as a premium. Either way, I'm happy. I used to own this stock and sold it into the bull market a couple of years back, it was a late player to the table of the last bull market, but since there seems to be a plan to build infrastructure to create jobs, I'm finding that this stock may benefit even during the recession, we'll have to wait an see.

Sold 5 Puts to Open, Stock Symbol "MT" Strike Price 17.5 Bringing in $125 (before Commissions into my account). While this is a steel company, I did this trade for the same reason as the above trade. This stock is currently trading at 24.50, so it has to retreat a long way in the next 12 day for me to be put and own the stock at $17.50, Which I would do, but only time will tell.

Flipped 40,000 shares of F Paid $1.94 sold within a few minutes for $1.95 bringing into my account a gross of $400.00 (less commission). This is a simple day -trade flip for an extra $400 while I'm looking for more stocks that I would like to own and to sell puts against.

Last week I sold 7 puts on CSH with the strike of 30 today I sold another 7 put options on the 25 strike at .55 bringing into my account $385 (Before Commissions), A material Item has changed since I put my original position which I believe may have a material impact on its earnings short term. As I understand it, through legislation, they lost their ability to do payday type loans in some states but they are still going to pawn, which is profitable but not as profitable as the payday loan business (as you can imagine). I still like this stock but I sold the 30 Puts and the stock is trading in the 29.40ish range where there is some technical support down to at approx 28.45, but I still want to own this stock because they are trying to buy the biggest privately owned Pawn Shop chain in Mexico. If that deal happens their earnings should rise and so should their stock accordingly. But my shorter term view has been shaken and therefore I have an order in to sell 7 of the current month 25 strike puts at .25.

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Fort Worth, Texas (September 29, 2008) - - Cash America International, Inc. (NYSE: CSH) announced today that it has entered into a letter of intent to acquire an 80% ownership interest in a 100 store chain of pawnshops in Mexico.

My thought process is that if the stock goes all the way that low, then it is way oversold and I'd average down my buying price on the stock at 27.5, however, I'm not that convinced that this stock wont rally before expiration day back towards 32.5 -35, leaving me with just option premium in my account and no stock. Whether I get put at 30, and 25 strikes or just at 30 strike, I plan to sell cover calls at the money for the short term and then if the stock doesn't get called away to sell out of the money calls for the next couple of months or until the Mexico deal comes through. As time goes by, and if the Mexico deal gets done, then I won't even sell calls as I'll wait for the earnings to pick up and hold this stock for another year or two during the recession. But we'll have to see if I even get put the 30's or if this was the sell off and the stock heads back up from here. I believe that once the Mexico acquisition is finalized we will finally see the upswing that it's competitor "EZPW" has already seen trading at 14.5 P/E vs. CSH which is currently trading at only 9 times its P/E.

Bought Calls to Open 10 Google 320 Strike @ 12.80 and turned around and offered them out and sold them for $13.00 credit my account $200.00 No position, just a trade that was there. It seems that with all of the trading on google today that it had found a temporary trading range of 310-312, so I took advantage by buying on the bid and selling on the offer one of the highest volume current month option calls that were trading. Turning it right around and selling it for a $200 profit. I'll watch the stock some more and maybe do it again if the opportunity arises. Could have held it with the big sell of in google as it may rebound, but with the market weakness, I didn't feel comfortable holding it any longer than was absolutely necessary to turn a profit. Never let greed overcome good judgement is what I told myself at the time of the trade. I have to dedicate this trade to "Yama Sushi on the Lake" The Best Sushi Bar in Orange County California, as I like Sushi and took my wife there last night. The bill came to $192 with tip and drinks, and I had quite a few drinks. Therefore, this trade is dedicated to them, as it paid for the dinner and I was thinking while eating and drinking that I would do a trade today to pay for it.

Thank You Yama Sushi on the Lake
The reason That I'm thanking them is, if it weren't for dinner last night, I wouldn't have been looking for a quick in and out trade, but because of the quality Sushi that they have, I had to eat there an that forced me to look for the Google trade, so when I saw the stock stall at a new range between $313-$315 I had to make another flip trade and here's how it went:

Sold to open 10 Google 320 Strike calls at 13.70 on the offer and within a minute placed an order to buy it back on the bid at 13.40 putting a $300 Profit in my account. (Before Commissions) So now I didn't just pay for a The Best Japanese Food in Orange County, but I'm up $300 to boot. I wouldn't have even looked for this trade if I didn't feel that I wanted to do a quick flip to pay for dinner, but once I found the trade, I had to stay with it just a little while to see if there would be another opportunity, where the stock moved, but then stalled in another trading range and when that happened, I did it once, more. I probably will not do the trade again today unless while I'm watching it, the stock first makes a move and then stalls again. I'll let you know, but for now, anyone of you that watch my blog real time, and have a computer, the symbol for this particular option and strike is GGDKD. have fun watching and wish me luck!