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What are you buying today?


LowIQinvestor

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Bought back the TSLA call spread, i am out of the TSLA short for now because i think that Elon will once again pump up the stock price at the next earnings call.

 

And sold a call spread again, this time i shorted the AUG2019 305$ call and long 400$ call.

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EUK3.F (Eurokai). Shipping berth/ port operator operating harbors in Germany, Italy and a few other countries. Very solid balance sheet, cheap and illiquid, the way I like it.

 

IBKR - bought a few shares in today’s selloff. Might just be trade.

 

I continue whittling down my pipeline holdings as they march towards fair value.

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New house project finished, wife happy? [ : - ) ]

Haha! For now, yes (to both)...as for tomorrow...  ;D ;D

 

Great to read, LC, thank you for sharing,

 

From what I've read from your posts here on CoBF during the years, you started out early, and are still young. You have a hell of a runway in front of you, to do good. Best of luck going forward from me! [ : - ) ]

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BHC calls. This one looks like it's ready for a breakout. small spec position....

 

You have peaked my interest with this. Any quick insights you have about this company?

 

Nothing worthy of praise as far as info goes. 90% of my short term bullishness is for technical reasons.

 

More or less this is a classic in favor, to out of favor, let the pendulum swing story. So as we all know, it's highly levered. Minor improvements in the business and or debt reduction greatly enhance the equity value. I give some weight to the fact Joe Papa came over when the stock was trading at higher levels($35 or so IIRC), and a lot of his compensation is tied to stock options north of $60.

 

Its been quiet of the VRX/BHC front for a while now. It seems after the name change and some time passing that the shackles of negativity are slowly moving away from the company. So on a fundamental basis, I dont see the same overhangs I did a few years ago.

 

Now look at the chart. This thing has run up to $25 or so several times, and then fallen back. But again, like the broader market, it is resilient and knocking on the door again. It's purgatory trading range has basically been $12-25 and I think having done its time in the penalty box and shown sustainability at the core business, it's ready to make a big move if we see one more solid earnings report(Feb20).

 

I looked at the options and having the above outlook, the March options look quite cheap. You can go long a $24 or $25 call for $2. That strike gives you a built in stop loss should earnings suck or the shares pull back down from the high end of the current trading range. Whereas if this runs you got IMO at least $4-6 per share in upside. Given the setup I think the options are very mispriced, and as such, am willing to take a swing with a small spec position.(For me defined as .5% of portfolio or less. In this case it is less)

 

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