Monday, July 21, 2008

Quick Update

So, to add some spice in my life, I picked up a bear put spread $15-$17.50 on SanDisk (SNDK) for 0.87.

Sold Aug $15 SWQTC at 0.53.
Bought Aug $17.50 SWQTW at 1.40.

They announce tonight, so I'll find out pretty quickly if this is going to cost me money or make me some. With my luck, I'll probably lose the first time in quite a while that I jump onto the dark side of the trade. Ha ha. It's a really small bet, so it won't hurt me too badly if I'm wrong.

In other news, the Wet Seal has fallen quite a bit today, down about 8%. Haven't seen any specific news, but most other retailers are also falling today, albeit not quite as much. Anyway, nothing for me to worry about. Just wait and see what happens.

I might sell some Citigroup (C) calls at some point to reduce my exposure a little bit. But, I'm not quite ready to do that yet. I will likely sell another round of calls on General Electric (GE) soon though.

*** Edit #1 ***

Well, as gaamblor already mentioned, SNDK missed its numbers (both top and bottom) by a huge margin. I am surprised at the size of the miss, as well. I guess this means that I'll probably be making money off of the spread barring some hidden good news in the conference call that'll start in about half an hour.

Shares traded as low as the mid-15's, and now are hovering in the $16 - $16.50 range.


gaamblor said...

ha i bought a little sndk at 18 for a gamble, they are trading at about book value and still making money how much lower can it go?

Brute Force said...

Heh, what's funny is in the last week and a half or so I had gone long on SNDK in the 16.20s, and dumped my shares at 17.50. I never did get the chance to post that in the blog, so I just left it out.

And, ya, I was thinking what you were thinking when I got long and then I got out thinking I've gotten burned once too often. So, this time I am honestly fading myself. Maybe this is classic man vs. himself conflict.

Either way, I guess we'll see what happens really soon.

gaamblor said...


gg you, how do you miss revenue by that much and not warn in advance...