Kelly: Taking on More Risk

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 |  Includes: CHL, HZO, NVT, POT
by: Thomas Kelly

Thursday morning I decided to make a few moves to take on a bit more risk on the long side. From where I sit, it looks like the market is having a minor freakout over the jobless claims numbers, and I don’t think it is warranted. I’m viewing this as a final shakeout of the last few sellers before we can go challenge the resistance levels up ahead. Therefore, I made several moves this morning.

Sells

(NYSE:HZO) puts–I sold half my put position at a premium of $2.60. I still want to see the quarterly results on this one before making my final decision, but for the moment, I am less inclined to be short anything. This morning’s correction is a good chance to take a bit off the table.

(NVT)–I sold this holding at $74.01, essentially because I felt there were better opportunities out there and this was an easy way to raise a lot of capital in order to take advantage of those opportunities.

Buys

(NYSE:POT)–I bought a small position at $132.98. Another good fertilizer play, and a pretty decent entry point.

(NYSE:CHL)–I doubled the position at $72.65. A good opportunity to average down. Still a pretty small position.