Wednesday, May 18, 2005

Portfolio and Market Update

Today's benign inflation data really sent us skyrocketing. Since my last update, here are some things that have happened regarding my own holdings.

I've sold covered calls on half my EBAY position. My shares are likely to get called away this Friday... I sold the May 35's for 0.80 a contract. This is a nice way to get a little premium (at the time of sale) while exiting part of the position. With EBAY now at 35.88, my sold calls are technically at a loss of 0.08, but at the time they were sold, the premium was a full 1.1% for 4 days.

Hot Topic (HOTT) reports earnings today after the market closes. There have been a slew of upgrades by various investment houses on HOTT. But, based on Same Store Sales data, I just don't see what is so rosy about the business' outlook. And, true to my nature, I'm placing my bets. I've established a medium-sized trading position on the short-side at a price of 21.26. If I'm wrong and it moves higher, I will exit and take a loss. If it moves lower, I will probably remain short for longer.

And, for those tracking Spud's activity... he has reduced his EBAY position a great deal. He has indicated that he will continue to reduce the size of his trading position slowly. Good idea. Nothing can be more damaging psychologically than having an incredibly large profit disintegrate.

That's all for now.

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