Awesome Buy-Write

July 23, 2010

Have you ever written an option on an ordinary stock with implied volatility north of 200% ?  I just did.

I mentioned Arena Pharmaceuticals the other day when (most of) it was about to be called away.  Sometimes when I feel that a company may be on to something huge that will give me seller’s remorse (the bull market version of buyer’s remorse), I’ll use some of the premium to buy a little extra stock.

Today that stock was ARNA.

Read the rest of this entry »


ECRI Posts Drop On WLI Growth To -10.5

July 23, 2010

WLI stayed even with last week after a minor revision, but WLI Growth dropped once again from -9.8 to -10.5. The drop in ECRI’s Growth Index today will further the view we are heading towards a double dip recession. WLI Growth index is the more important index. It will be interesting to see how bears like Dave Rosenberg react to this data. Recall, he originated the idea if that index falls to -10 then it would signal a recession, even without the blessing of the ECRI team.

Read the rest of this entry »


Follow

Get every new post delivered to your Inbox.

Join 422 other followers