This mountain I must climb
Feels like the worlds upon my shoulder
through the clouds I see love shine
It keeps me warm as life grows colder

I wanna know what love is
I want you to show me

Foreigner

There is a good lesson to be shared here about investments when it comes to falling in love with a stock. There is no falling in love when it comes to good investing because if you do, there will only be "heartache and pain." Investors have to analyze and reanalyze the reason to be in or out of a position almost daily, and never fall in love with the company. Not falling in love with any stock should be one of your top investing rules. The best advice I can give any investor is "gotta read between the lines" and leave love for your personal life.

Gypsy, has eyes that hide the secrets no one sees

Easy, you smile until she brings you to your knees

Stick around 'til you get the truth

Taste blood when you get your proof (oh yeah)

Find that you've never understood

Give it all, but it's meant for good (oh yeah)

And I know this life makes fools of wise men, thieves and kings

When we lose we live our lives like puppets on a string

Close your eyes and you'll lose your soul

Do your time but there's no parole from here

No chance when the end is near

Hear the words that you never thought you'd hear

Life whispers in your ear

It's a long way down, when you fall from the top

KISS

First and foremost, Happy Holidays to all!

While we wait to see if Washington is going to bring us Christmas cheer or Scrooge 2012

Riding the storm out, Waiting for the fallout

On a full moon night in the Rocky Mountain winter

Wine bottle's low, watching for the snow

I've been thinking about what I've been missing in the city

And I'm not missing a thing

Watching the full moon cross the range

Riding the storm out, Riding the storm out

REO Speedwagon

I was stuck in a Dallas hotel on October 29, 2012 trying to get to New York City. The flights to JFK were canceled Monday and Wednesday due to Hurricane Sandy which has left the upper East Coast "Riding the Storm Out." I won't add anything other than my prayers to those affected by this storm as the media has inundated us with plenty of information.

Let's turn our attention to Freeport-McMoRan (FCX) and the position we started on March 19, 2012 at $38.38. FCX is currently trading at $38.64,

Mustang Sally

Guess you better slow your Mustang down

Mustang Sally

Baby, I guess you better slow your Mustang down

You been a runnin' all over town

I guess I'll better put your big feet on the ground

Oh, yes I will

All you wanna do is ride around, Sally

(Ride Sally ride)

All you wanna do is ride around Sally,

(Ride Sally ride)

Buddy Guy

In our last article (September 8, 2012), we commented on the likelihood that the United States would follow the ECB in implementing a form of QE3, which in fact happened. It happened with such a magnitude that many "experts" have given the impression that Fed Chairman Bernanke "better slow (HIS) Mustang down." The argument for or against QE3 is best left for another day, but I believe it is safe to say that the re-opening of the printing machine will help prop

Eddie waited till he finished high school

He went to Hollywood, got a tattoo

He met a girl there with a tattoo too

The future was wide open

They moved into a place they both could afford

He found a nightclub he could work at the door

She had a guitar and she taught him some chords

The sky was the limit

Into the great wide open

Under the skies of blue

Out in the great wide open

A rebel without a clue

Tom Petty and The Heartbreakers

The European Central Bank (ECB) announced a bond-buying plan Thursday that lifted U.S. markets to levels we haven't seen since 2007. China followed suit with a post on the National Development and Reform Commission's (NDRC) website announcing plans to boost infrastructure spending. Together, these announcements helped investors feel better about global growth.

Just as the market was feeling like the "sky

When I look into your eyes

It's like watching the night sky

Or a beautiful sunrise

There's so much they hold

And just like them old stars

I see that you've come so far

To be right where you are

How old is your soul?

I won't give up on us

Even if the skies get rough

I'm giving you all my love

I'm still looking up

And when you're needing your space

To do some navigating

I'll be here patiently waiting

To see what you find

Jason Mraz

Freeport-McMoRan Copper and Gold, Inc. (FCX) was originally added for long exposure on March 19, 2012, and the put option rolled to Aug $40 on May 18, 2012. Timing is the key question when it comes to owning FCX because the company should benefit more than the underlying commodity when Copper and Gold rise. "There's so

I woke up this morning and the sun was gone

Turned on some music to start my day

I lost myself in a familiar song

I closed my eyes and I slipped away

It's more than a feeling

More than a feeling

When I heard that old song that they used to play

So many people have come and gone

Their faces fade as the years go by

Yet I still recall as I wander on

As clear as the sun in the summer sky

It's more than a feeling

-- Boston

Aflac (AFL) easily meets all my criteria for long exposure in Dark Horse Traders' Hedge. I prefer to look at levered free cash flow, and AFL's $3.69 billion has gotten my attention. Its operating cash flow of $12.2 billion keeps me wanting to look deeper. Out of the 20 analysts following the company, seven have upgraded 2012 estimates

I used to like to walk the straight and narrow line

I used to think that everything was fine

Sometimes I'd like to sit and gaze for days through sleepless dreams

All alone and trapped in time

All alone and trapped in time

I wonder what tomorrow has in mind for me

Or am I even in its mind at all

Perhaps I'll get a chance to look ahead and see

Soon as I find myself a crystal ball

-Styx

Recently, I wrote about Patience, a quality often absent from the minds of investors especially following short-term swings. Today, I am writing about an element investors would love to have but don't, "perhaps I'll get a chance to look ahead and see, soon as I find myself a crystal ball." We often "wonder what tomorrow has in mind for me" and with regards to the Fed and other politically

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. (VCI) and LDK Solar Co Ltd. (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

Shed a tear 'cause I'm missin' you

I'm still alright to smile

Girl, I was thinking about you every day now

But you set my mind at ease

There is no doubt you're in my heart now

Said woman take it slow, and it'll work itself out fine

All we need is just a little patience

Said sugar, make it slow and we'll come together fine

All we need is just a little patience (Patience)

I sit here on the stairs

'Cause I'd rather be alone

If I can't have you right now, I'll wait dear

Sometimes I get so tense but I can't speed up the time

But you know love there's one more thing to consider

Little patience, mm yeah

Need a little patience

-- Guns N' Roses

One element of trading that is too often overlooked is patience. We have discussed putting on a portfolio that can

He's got plenty of cash

He's got plenty of friends

He drives women wild

Then drives off in his Mercedes-Benz

He's got a long wick with a flame at both ends

He's hot

But don't let him go

Just give him a chance to grow

Take it easy, take it slow

And don't let him go

Don't let him go

-- REO Speedwagon

Green Mountain Coffee Roasters' (GMCR) founder and former Chairman, Bob Stiller, is arguing "don't let him go" after his dismissal for having a margin call on GMCR shares that prompted the sale of another $125,000,000 on May 6, 2011. The fact that Stiller needed to borrow against his remaining shares is an interesting story in itself when you realize how much cash he had raised in "insider sales" in the last 12 months.

• March 14, 2011 11,144 shares $58.99 $657,384
• May 4, 2011

I'm singing this note 'cause it fits in well

With the chords I'm playing

I can't pretend there's any meaning here

Or in the things I am saying

But I'm in tune

Right in tune

- The Who

US Airways Group, Inc. (LCC) stock received a 16% boost last Thursday on news of union support for a merger with bankrupt American Airlines. Fortunately, we have had long exposure to LCC since being recommended on January 28, 2011. On June 9, 2011, we elected to wait for another day to re-enter the buy/write position. Well, "I can't pretend there's any meaning here, But I'm in tune," because this is just what we were looking for and "I'm singing this note 'cause it fits in well."

US Airways Chairman and Chief Executive, Doug Parker, said "We are pleased to report significantly improved first-quarter financial results in spite of record-high

I want you to want me

I need you to need me

I'd love you to love me

I'm beggin' you to beg me

I'll shine up the old brown shoes

I put on a brand new shirt

I'll get home early from work

If you say, that you love me

-- Cheap Trick

MIPS Technology Inc. (MIPS) was recommended for long exposure on April 28, 2011 when we spotted value in the contracts and IP at MIPS. We evaluated the options on October 21, 2011 and decided to accept ownership of the put option sold, providing us a cost basis of $6.19 in what we deemed to be a growth stock. Share price soared yesterday afternoon when Bloomberg reported that MIPS had retained Goldman Sachs to pursue a potential sale. Goldman Sachs will help MIPS "shine up the old brown shoes" and "put

Take a look around you, look nothing's what it seems,

We're living in a broken home of hopes and dreams,

Let me be the first to shake a helping hand.

Everybody, pray enough to take a stand,

I knocked on every door, on every dead end street,

Looking for forgiveness,

What's left to believe?

Oh, if there's one thing I hang on to,

It gets me through the night.

I ain't gonna do what I don't want to,

I'm going to live my life.

Shining like a diamond, rolling with the dice,

Standing on the ledge, show the wind how to fly.

When the world gets in my face,

I say, have a nice day.

-- Bon Jovi

A quick glance at the stock chart for J2 Communications, Inc. (JCOM) shines a light on what "standing on the ledge" must feel like or at least felt like at

Shot through the heart

And you're to blame, darling

You give love a bad name

An angel's smile is what you sell

You promise me heaven and then put me through hell

Chains of love, got a hold on me

When passion's a prison you can't break free

You're a loaded gun, yeah

There's nowhere to run

No one can save me, the damage is done

Shot through the heart, and you're to blame

You give love a bad name

-- Bon Jovi

Before I get into the reasons I believe J2 Global Communications (JCOM) "gives love (stocks) a bad name," I want to recap the closing positions on Friday which I posted March 16, 2012.

In quick summary, Radware Ltd, (RDWR) was called away at $31 with a 34% gain since November 11, 2010. I posted in the March 5, 2012 article the series

I'm not a perfect person

There's many things I wish I didn't do

But I continue learning

I never meant to do those things to you

And so I have to say before I go

That I just want you to know

I've found a reason for me

To change who I used to be

A reason to start over new

And the reason is you

-- Hoobastank

Houston American Energy Corporation (HUSA) has been a good hedge for our long positions. Our short interest in HUSA is well-documented starting on July 1, 2010 at $9.91. HUSA provided us with the opportunity to take a quick +12% gain ahead of their "earnings" report on August 13, 2010. Not to be counted out, HUSA bounced on what I would call poor quality earnings and gave us a second chance to short again on August 18, 2010 at

If I leave here tomorrow
Would you still remember me?
For I must be traveling on, now
'Cause there's too many places I've got to see
But, if I stayed here with you, girl
Things just couldn't be the same
'Cause I'm as free as a bird now
And this bird you can not change
And this bird you can not change
And this bird you can not change
Lord knows, I can't change

Bye, bye, baby it's been a sweet love
Though this feeling I can't change

But please don't take it so badly
'Cause Lord knows I'm to blame…

"Freebird" -- Lynyrd Skynyrd

In my last post, we discussed one of the most frequently asked questions: when to sell a stock. Sometimes, when we use options to gain exposure to the position and earn time premium,

Song sung blue
Everybody knows one
Song sung blue
Every garden grows one

Me and you are subject to the blues now and then
But when you take the blues and make a song

You sing them out again
Sing 'em out again

Song sung blue

Weeping like a willow
Song sung blue
Sleeping on my pillow…

"Song Sung Blue" -- Neil Diamond

When should I sell a stock? This is a very difficult question to answer. Like Neil says, you can always take an announcement "sing it with a cry in your voice" and have a "song sung blue." In the case of Arrow Electronics' (ARW) earnings announcement today "you simply got no choice."

Arrow Electronics, Inc. (ARW), was originally recommended for long exposure on November 4, 2010 at $30.55, and that recommendation was reiterated on

Well I just heard the news today
It seems my life is going to change
I closed my eyes, begin to pray
Then tears of joy stream down my face

With arms wide open
Under the sunlight
Welcome to this place
I'll show you everything
With arms wide open

If I had just one wish
Only one demand
I hope he's not like me
I hope he understands
That he can take this life
And hold it by the hand
And he can greet the world
With arms wide open…

Creed

For those of you with a odd sense of humor (like me), check out Tim Hawkins' rendition.

All of the positions we discussed last Friday closed and/or rolled as expected. Agilent Technologies (A), Gannet Communications (GCI) and China Petroleum & Chemical Co. (SNP) have all moved on ("I

Once upon a time you dressed so fine

You threw the bums a dime in your prime, didn’t you?

People’d call, say, “Beware doll, you’re bound to fall”

You thought they were all kiddin’ you

You used to laugh about

Everybody that was hangin’ out

Now you don’t talk so loud

Now you don’t seem so proud

About having to be scrounging for your next meal

How does it feel

How does it feel

To be without a home

Like a complete unknown

Like a rolling stone

Like a Rolling Stone - Bob Dylan

After watching the Republican debates, I feel like we have “no direction home.” I wonder what happened to the days when the president of the United States “used to ride on a chrome horse?" Somewhere along the way I have discovered that the president isn’t “where it’s at, after he took from (us) everything (they)