Tuesday, May 13, 2008

Quick Update

Sold the Apple (AAPL) bull call spread for $9.95, just a nickel less than the max value. The May 160's (APVEL) sold for 29.90 and the May 170's (APVEN) were bought at 19.95. Excluding transaction costs, this was good for a 140% gain. Guess it's time to finally buy that damn LCD HD I've been talking about for who knows how long.

And, of course, I can't neglect mentioning my current obsession... The Wet Seal (WTSLA) is up nicely today, but it is running into what looks like a barrier at $4 barrier today. Let's see if it can get past that magic number so I can sell off a piece.

--- Edit #1 ---

Something might also be going on with Mattel (MAT). The stock is up solidly in a down market on no apparent news, and Briefing is reporting that its May 20 calls are seeing interest with 1350 contracts trading compared to an open interest of 2060.

--- Edit #2 ---

The mf'ing Seal did manage to break past the $4 mark, and so I sold 20% of my WTSLA at 4.07. Holding the remaining 80% with no current plans on further selling. The remaining shares still represents a really large position for me, so don't think that I've lost any confidence in this beast.

--- Edit #3 ---

Got some of the details from the Brean Murray report, which was likely the reason for today's 6% move in shares of Wet Seal (WTSLA).

Brean Murray mentions a scheduled full-rollout of the new Arden B, which offers a more balanced selection of clothing as compared to its previous 'all or nothing' approach. They say that the Wet Seal management remains highly encouraged by the new looks, and believes the chain will eventually return to profitability. Brean Murray also believes that Arden B will either show real progress or be closed down. They believe (as do I) that either of these alternatives would be seen as a positive.

Wet Seal earnings are scheduled in a couple more weeks on May 29. We should hear a lot more about what's going on then. For now, let's enjoy our gains.

No comments: