Rob's Lobs

[New-born baby]

$2.80

BMHC is right now $24.80 per. The DEC $25 calls is $2.80. That's more than 10%, gentlemen, and offers you some downside protection. If you really like BMHC, what's wrong with that play?

[Rob]

NVEC Rides Again

NVEC showing some life today ...

Okay, this is starting to get ridiculous. Just how far is this suckah going to run anyway? And a better question: why didn't I BUY it? Sheesh!

[Rob]

BMHC is right now $24.80 per. The DEC $25 calls is $2.80. That's more than 10%, gentlemen, and offers you some downside protection. If you really like BMHC, what's wrong with that play?

Nothing that I see, NBB. Being that I am not one who pays a great deal of attention to options, I ask you: is it uncommon to find very-near-the-money calls 4 months out that are greater than 10% of the share price?

[New-born baby]

Nothing that I see, NBB. Being that I am not one who pays a great deal of attention to options, I ask you: is it uncommon to find very-near-the-money calls 4 months out that are greater than 10% of the share price?

On volatile stocks, no. SU, for example, was $85 a few days ago. The $85 DEC call was selling for $8.50. I took the money. SU has since dipped down to $78, where I covered the call at $4.90 I think, and has since rebounded. Now the premium is below 10% for the Dec calls.

I'd say that if you can get 10% in 4 months, well, I am going to take it every time. And if the chart shows resistance at $85 like SU chart did, then I'll sell the call and make the stock prove me wrong. SU moves around alot, and you can make money both ways. Somedays you just know it is going to drop $1-$3 (like yesterday), so you can buy a put, too, while you hold the call, and profit twice.

So I'd say a 10% in 4 months is pretty good, and if it starts to fall, buy a put and profit twice.

[New-born baby]

Amln

Robert:
The other day AMLN was selling the JAN $45 at $7.20. I just had to take it. The chart was showing resistance, and that is 16% on a $45 stock in 5 months. I think when you find 10%+, you are probably looking at two things: sell that call and expect the stock to pullback

[Rob]

Bmhc

Building Materials Holding Co. . . . looks like it could be a winner short-term.

I see Jim Smith has picked up on this one too. In the smae vein, here's some food for thought, or fodder for further research, that arrived in my email in-box Wednesday afternoon:




Opinions to the contrary?

[Rob]

The One That Got Away?

I tried buying some BMHC with limit orders this morning, once for 25.25 and once for 25.35. Both times they came within a few cents and ran away from me. Since I detest "chasing" stocks, I just cancelled and let it go.

If it drops back to that level I may consider it again. If not, then let the upward momentum begin, because, now that I don't own any, it should rocket skyward.

[Rob]

Just how far is this suckah [NVEC] going to run anyway?

Okay, I guess this answers my question ....

... sort of

[Rob]

I tried buying some BMHC with limit orders this morning, once for 25.25 and once for 25.35. Both times they came within a few cents and ran away from me. Since I detest "chasing" stocks, I just cancelled and let it go.

If it drops back to that level I may consider it again. If not, then let the upward momentum begin, because, now that I don't own any, it should rocket skyward.

Well how d'ya like that? It's down this morning, giving me another opportunity to buy. I'm not going to bite this morning, though. Not sure why ... just don't feel like it I guess.

[New-born baby]

Well how d'ya like that? It's down this morning, giving me another opportunity to buy. I'm not going to bite this morning, though. Not sure why ... just don't feel like it I guess.

Huge resistance at $26. Should BMHC bust $26, looks bullish again. But it has to bust $26, imo, first.

[DSteckler]

BMHC needs to get through 27, not 26.

[New-born baby]

BMHC needs to get through 27, not 26.

Dave,
You are absolutely correct. I am not having my best day today, that's for sure. I should also mention to Rob, (that is, if I can post this correctly ), that if BMHC drops below $23.80, that's a a descending triangle signifying a bearish drop ahead. Here's a play: buy at $23.85-$24, and look for BMHC to bust resistance for a big winnah for you.

[Rob]

1-year Charts from One of Park Twain's Lists

I'm still seeing a good number of "defensive" stocks making gains like tobacco (LTR, MO, BTI), comm. r.e., soft beverages (KO, PEP, PBG), and BREAKFAST CEREALS (GIS, K) for pete's sake!

The following morsels are showing post-ATH breakout moves, imminent ATH breakouts, passing near-term resis with a high ceiling to next resistance, or a climber w/ good-looking technicals up the right side of a nascent long-term cup.

ALSK
BCO, BRKR
CBS, CLHB, CMX
ENB
FISI, FRX
GIS
HGIC, HSIC
K, KO
MET
PBG
SFL, SKT, SNWL

Long-time gainers that appear on 52-wk highs list again today: AVB, LTR, VTS, WOOF. I never hear any mention of these wealth-builders around here!

Very nice list of good-looking charts there, Park! Thanks for sharing that list.

... and, speaking of good-looking ... who gave Cindy my cell phone number? Now I'm going to have to change it again.

[Rob]

Opinion

Looking at the Dow and Nasdaq charts, my unabashed opinion is that this selling that started at 10:00 is just stupid. Also I think that we are within minutes of an intraday bottom. We'll see.


Edit: Okay, I was right for about an hour and ten minutes ... and then the sellers came back. Oh well ... win some, lose some.

[Rob]

Ebay

EBAY's bustin' a move above 26, Bubs.