Back into Yahoo buy/write
I bought Yahoo (YHOO) at $31.40 and sold Jan 2008 35 strike calls for $4.70. I am doing this ahead of the earnings report tonight. I think that there is some upside limits to YHOO (hence I sold the calls) but I do think that below 27.5 there is value. Yahoo is a real business and is not going to be eliminated by Google (GOOG).
I own the position described above.
Disclaimer:
Nothing in this blog is meant to be specific financial advice or a recommendation to buy or sell. I do not give investment advice. Do your own research. Do not rely on anything in this weblog to make investment decisions. I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security.
bottom on amd please?
the rsi is pretty oversold
thanks
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Since I play with my own money and not yours, I'll can only give you an opinion as to what I would do with my own money. I have a value bias. It's hard for me to get excited about AMD until its p/e is at least below that of Intel and probably in the teens. This means something like 12-18 on the stock price. That's where I'd become interested with my own money.
Remember this stock went up A LOT on speculative fervor. It takes a long time for that fervor to unwind. I'd even look for the stock to get crushed during tax selling season (Oct-early Dec).
One thing in favor of AMD and other computer and chip stocks is that summer is usually a good time to buy. It's bad season for revenue growth. Thus stocks have a hard time going up.
Disclosure:
I do not own AMD. I own INTC.
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Yahoo getting clobbered down 20% this morning. I got this one wrong. When solid companies like Yahoo have huge drops like this they oven have a bit of a bounce the next day. If I am going to reduce my exposure I'll do it then. Yahoo still has nicely growning revenues but they are late delivering the clickthrough produce that rivals Google. I will reduce my speculative positions. (taking losses) in Yahoo and leave myself at a size that relfects a long term position. (smaller size obviously). The beauty of diversification is that one can take a loss like this and keep looking for opportunities. You never want to be in a situation where you MUST trade.
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i greatly appreciate your feedback.
i feel amd deserves a premium valuation over intc. as it is a much better run company.
what about natural gas? will it ever go up?
thanks again
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