Tuesday, July 25, 2006

Quick Update

I sold August $40 Calls on the new shares of Form Factor (FORM) that I picked up yesterday. Got filled at $3.10 a share.

Basically, I am a bit nervous about the upcoming earnings release this week (July 27). I am basically giving myself a $3.10 buffer. So, right now the new FORM shares carry an effective cost basis of $34.45, but have an upside cap at $40. The recent Broadcom (BRCM) dump gave me cold feet.

In any case, I'm still holding the original FORM shares in the Long-Term portfolio without any options coverage.

** Edited to Add **

Good news has been pretty rare these last few months... so I better take the opportunity to throw out a couple positives here. Altria Group (MO) did well last quarter and in their earnings call, they guided above expectations. They were able to increase their U.S. market share in cigarettes to 50.5%. The shares are now at an all-time high trading at over $80.

Chevron hit an all-time high today at $67, as well.

** Yet Another Edit **

So, for shits, I put out a small buy order on FORM in the afterhours market at $38.65. This is a full $1 below the closing price. I did not expect the order to fill... but it did. So, I guess I've got me some more of it.

No comments: