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From a haze came a rage of thunder
Distant signs of darkness on the way
Fading cries scream of pain and hunger
But in the night the light will guide your way

So take hold of the flame
Don't you see life's a game
So take hold of the flame
You've got nothing to lose, but everything to gain

- Queensryche

Today is June options expiration. The short-term bottom in the market a few weeks ago has provided an entry for more long exposure. The options we sold against Valassis Communications Inc. (NYSE:VCI) and LDK Solar Co Ltd. (NYSE:LDK) are expiring, allowing us to "take hold of the flame." We will be collecting the premium on our June VCI call and exercising our June VCI and LDK puts, as they are expiring in the money.

The premiums collected on the VCI put and call bring our cost basis to around $20/share for a PP/E of 5.69 and a 5-year EPS growth rate of 10%. LDK, while not my typical stock for Dark Horse, is one of the top three solar companies, and at $2 a share, it's really got nowhere to go but up. While I wouldn't go so far to say that "we have nothing to lose," we do have "everything to gain."

All things being equal, I think the market has more upside than downside potential right now. The S&P 500 took a 10% correction and has held so far. The market appears optimistic following the Spanish bailout proposal and heading into the Greek election this weekend. Banks appear to be undervalued--I'm considering entering a financial position shortly. Stay tuned.

Recommendation:

Let VCI June call expire, Exercise VCI and LDK June Puts to get long exposure.

Source: June Options Review: Take Hold Of LDK Solar And Valassis Communications