| Company | Ticker | Price % Change | Volume % Change |
| Tri Valley Corp | TIV | 164.96% | 11291.34% |
| Neurometrix Inc | NURO | 30.04% | 3365.85% |
| Altair Nanotechnologies | ALTI | 29.83% | 2773.34% |
| Ambassadors Intl Inc | AMIE | 75.31% | 1705.57% |
| Discovery Labs Inc | DSCO | 78.96% | 1356.74% |
| Pinnacle Gas Resources | PINN | 13.51% | 1116.25% |
| Fibertower Corp | FTWR | 36.84% | 853.97% |
| Warren Resources Inc | WRES | 29.84% | 725.83% |
| Innodata Isogen Inc | INOD | 5.69% | 676.12% |
| Entegris Inc | ENTG | 7.32% | 661.58% |
| Eagle Rock Energy Ptnrs | EROC | 9.32% | 356.02% |
| Exterran Holdings Inc | EXH | 11.48% | 355.00% |
| Informatica Corp | INFA | 6.73% | 288.06% |
| Sealy Corp | ZZ | 13.38% | 274.78% |
| Fedex Corp | FDX | 6.41% | 252.02% |
| Select Comfort Corp | SCSS | 12.11% | 217.41% |
| United Parcel Svc Cl B | UPS | 4.44% | 204.66% |
| Powerwave Tech Inc | PWAV | 9.27% | 193.93% |
| Commercial Vehicle Group | CVGI | 15.82% | 190.16% |
| Motorola Inc | MOT | 8.91% | 152.54% |
| B J Services Co | BJS | 2.63% | 123.09% |
| Cirrus Logic Inc | CRUS | 4.48% | 117.66% |
| Take-Two Interactv Sftwr | TTWO | 3.86% | 95.38% |
| Amer Axle & Mfg Holdings | AXL | 16.14% | 90.88% |
| Alliance One Intl Inc | AOI | 7.78% | 30.62% |
The stocks which are most attractive to me from the list above are: Informatica Corp (INFA), Innodata Isogen Inc (INOD), Fibertower Corp (FTWR), and Select Comfort Corp (SCSS). However from the four listed, the only stock which has options available to trade is Informatica, so below is a detailed option trade involving Informatica. To learn more about the option strategies outlined in this post, risks, pricing, calculations, other strategies, and options in general, click here.
INFA Option Trade: I am quite bullish on INFA longer term, therefore I will be looking at opening a diagonal call spread. To open this I would purchase in the money March 15 call options and sell October 22.50 Call options against them. As of Friday's close this position could be opened for roughly $600 per option spread, and If I happened to get called out (INFA above 22.50 at October options expiration), this position would yield 25% in just over 1 month. If I was not called out, I would look at selling a similar call option for the month of November. This is a bullish income generating strategy.
The ideas outlined above involve the use of stock options. The reason option volumes have surged in the last 5 years is because they are a great way to hedge your portfolio as well as create income off of your shares (see option volume chart).
These are just examples and are not recommendations to buy or sell any security; if you're more bullish/bearish, you’ll want to adjust the strike price and expiration accordingly.
Disclosure: No Positions
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1 comments:
Great blog. Certainly added to my watch list. Still haven't sat down to read your ebook yet.
I know it is more important not to lose money but I still have to ask what your success ratio is on 1) These ~25% return investments and 2) on your ~600% very speculative, don't put more than 1% of your capital into the position.
Stephen
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