AAPL from 422.07 & LUK from 26.00
I used the rest of my free cash to buy AAPL 410 October Calls for $30.70/share. Currently trading at 422.xx
1. Why I think it would be important, hedging your holdings in the short term, either with $UUP as a longer term play or $SPXU as short term.
1.5. Quick explanation of implied volatility: IV simply represents how much the underlying stock will fluctuate over the next year (252 business days) with 68% confidence. In order to find out how much a stock will fluctuate over the next 90 days- you divide 90/252 = .36. You then take the square root of .36 = 0.5973. If IV is 30% you multiple .5973 x .30 which gives you 17.9% up or down in the next 90 days.
2. MYL has a price target of 32.20, Purchase price: $31.50 Implied Volatility: 30.81%
Sell to Open October 33 Call for a $1.02 Premium
Max Upside = 8%
Cost Basis Reduced by = 3.2%
3. SIRO has a price target of 80.23, Purchase price: $64.00 IV: 31.59%
Sell to open December 65 Calls for a 5.40 Premium
Max upside = 10%
Cost Basis Reduced by = 8.4%
1. Dollar Strength article: http://etfdailynews.com/2013/06/13/why-the-dow-jones-industrial-average-could-soar-to-300000/
If you are heavily invested in stocks, you may want to consider either stepping off to the sidelines now, or hedging up. One good way to do that would be to buy shares in the triple-leveraged inverse ETF, the ProShares UltraPro Short S&P 500 ETF (NYSEARCA:SPXU).
Now, don’t get me wrong. I am not turning outright bearish on the stock market. Any pullback you see now will simply be a well overdue correction. That’s it.
The new long-term bull in the stock market is alive and well. Almost no one thought we’d ever get to 15,000 and change in the Dow. But just as I said it would, we got there.
And just as I’ve also been forecasting, once this correction is out of the way, the Dow will start to head north again, and eventually, probably within three years’ time, we will see the Dow north of 21,000 — at a minimum …
And far more likely, pressing 30,000 or even higher.
It will blow away most investors. It will defy most analysts. And very few investors will actually profit from it.
But it will happen ? just like the Dow did when between 1932 and 1937 it soared 380 percent …
Even though the United States and the rest of the world sank deeper into depression …
Even though unemployment actually continued to rise …
And even though corporate earnings stank and banks went out of business left and right.
So why did the Dow soar over 380 percent from its 1932 low? And why will it do it again, and soar more than 380 percent from its 2009 low, the equivalent?
It all has to do with Europe. Between 1932 and 1937 ? much like today ? Europe went completely and utterly bankrupt.
The same thing is going to happen again. Europe is going to go down the toilet. I have absolutely no doubt about it whatsoever.
That’s also going to send the dollar soaring, as trillions of euros seek out the relative safety of the U.S. dollar. Which is precisely why I suggested investing in the PowerShares DB US Dollar Index Bullish Fund (NYSEARCA:UUP), back in my March 4 column.
2, MYL research – interesting analysis – http://www.nasdaq.com/symbol/myl/guru-analysis -