Friday, August 10, 2007
And.....I'm Out!
I sold out of everything I had with a gain this am in the pre-market. It wasn't much but I am not going down 100% in this slaughter. I will use the proceeds to strategically buy down my other positions. I still love CLNE and will buy when they go lower today.
Thursday, August 9, 2007
New Strategy
Hopefully everyone sold some of their CLNE yesterday. I sold about 150 shares which leaves me with 300 more to go. Anytime your stock is up over 15% I think you should trim the position. You can always buy more if it goes down and you still like it.
I have a new strategy that I want to put out there. With this roller coaster ride of a stock market, we have tremendous volatility which has translated into big swings in the market each day. So with that said, on big up days I am going to buy puts on financial institutions - my favorite is WB (Wachovia). I did this yesterday and clipped a 60% REALIZED gain this morning.
Why do I like (or dislike, remember we are buying puts which bets the stock is going down) WB?
1) I had a horrible banking experience with them recently. I won't get into it but their customer service is sub par to be polite. Also, all of the customer that were waiting with me were closing their accounts.
2) Back in 2005 or 2006, they bought Golden West. Golden West originated a ton of option ARM and hybrid ARM mortgages that are all sitting on their balance sheet (now WB's balance sheet). All of these mortgages will be marked down at some point and/or are the first type of mortgages, I believe, to start taking major losses. The borrowers of these mortgages are going to be shocked to say the least when these reset and they are not going to be able to pay.
Financials are out of favor right now and I think WB is going to have some major problems. You have both a short term way (general sector bearishness) and mid/long term (Golden West acquisition) for them to go down.
I have a new strategy that I want to put out there. With this roller coaster ride of a stock market, we have tremendous volatility which has translated into big swings in the market each day. So with that said, on big up days I am going to buy puts on financial institutions - my favorite is WB (Wachovia). I did this yesterday and clipped a 60% REALIZED gain this morning.
Why do I like (or dislike, remember we are buying puts which bets the stock is going down) WB?
1) I had a horrible banking experience with them recently. I won't get into it but their customer service is sub par to be polite. Also, all of the customer that were waiting with me were closing their accounts.
2) Back in 2005 or 2006, they bought Golden West. Golden West originated a ton of option ARM and hybrid ARM mortgages that are all sitting on their balance sheet (now WB's balance sheet). All of these mortgages will be marked down at some point and/or are the first type of mortgages, I believe, to start taking major losses. The borrowers of these mortgages are going to be shocked to say the least when these reset and they are not going to be able to pay.
Financials are out of favor right now and I think WB is going to have some major problems. You have both a short term way (general sector bearishness) and mid/long term (Golden West acquisition) for them to go down.
Wednesday, August 8, 2007
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