Daily Stock Market Equity and Options Trading Commentary

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Sunday, June 14, 2009

Some Ways I am Speculating for the Month Ahead

In this blog post I'll list some of the names I purchased on June 12, 2009. I have researched these stocks and found they all have similar bullish trends. After each stock I will give my Bull to Bear ratio (X:Y) and the Investor's Business Daily rating (IBD). For the criteria in each of these ways of rating a stock visit the "Hottest Blog Posts" section.

I have been watching these stocks for the past 2 weeks, and I decided Friday would be the day I enter all four, as they were all down over 3% at one point.

The list and strategy I am using for each name is below:

Stock Strategy #1: Level 3 Communications (LVLT) (10:2) (IBD rated 56) Today I purchased some common stock for $1.49 and was immediately able to write it out for the July $2.50 strike. Yes I have to hold the stock until July 18, 2009 but I was able to get 6.7% back on my investment with a chance of making a 74.5% return if the option happened to expire in the money. For more on covered call strategies check out my first E-Book.

Stock Strategy #2: Rubicon Minerals Corp (RBY) (14:0) (IBD rated 90) Today I purchased some common shares on this small cap company which is based in China for $2.95 per share. Down over 5% I could not resist. The negative with this stock is it has extremely light volume, and no options on it. I believe if Gold and other precious metals get even hotter, this is a great stock to keep an eye on.

Stock Strategy #3: Walter Energy Corp (WLT) (13:0) (IBD rated 99) Today I speculated on this company by opening up an option call spread position for the July 40/45. I was able to get into each contract for $90 and as I expect commodities to keep rallying, Walter should rally as well. With over a month until options expiration I believe I'll be able to net a gain from this strategy. I was able to get into this spread while Walter was down roughly 5%.

Stock Strategy #4: Aluminum Corp of China (ACH) (13:0) (IBD rated 75) Today I speculated by purchasing call contracts for the July 30 on this stock for $125 per contract. As from strategy #2 I expect metals to continue to rally and this stock should directly benefit from that.

Follow my blog for a weekly list of stocks I am buying/selling or looking at.

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