Seeking Alpha

Dark Horse Trad...'s  Instablog

Dark Horse Traders' Hedge
Send Message
Investview, Inc. Announces the Acquisition of a Majority Interest in Vickrey Brown Investments, LLC Accesswire The New Venture Could Potentially Add Significant Revenue And Will Expand Investview, Inc.'s Financial Investment Platform to Include the Development and Marketing of Exchange Traded... More
My company:
Vickrey Brown Investments, LLC
View Dark Horse Traders' Hedge's Instablogs on:
  • DARK HORSE TRADERS' HEDGE - Top 13 Stocks for 2011
    Sabrient's "Baker's Dozen" Top Stocks for 2011

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Jan 04 6:57 PM | Link | 2 Comments
  • DARK HORSE HEDGE - Rock and ROLL (those IM buy/writes)

    By Scott and Ilene at Dark Horse Hedge 

    40372, GLASGOW, SCOTLAND - Sunday May 9 2010. Kiss perform at the SECC in Glasgow as their Sonic Boom Tour comes to Scotland. Photograph:

    You’re looking fancy and I like your style
    You drive us wild, we’ll drive you crazy

    You show us everything you’ve got
    Baby, baby that’s quite a lot
    You drive us wild, we’ll drive you crazy
    You keep on shoutin,

    I wanna rock and ROLL all night – KISS

    It is a wonderful season of the year and my personal favorite time of the month.  Next week is options expiration week, and we need to rock and ROLL our options another quarter, turning a quality stock into a nice yield in our VIRTUAL Dark Horse Hedge portfolio.  The DHH portfolio was created using a combination of Sabrient's research and Phil's Buy/Write strategies. 

    On July 26, 2010 Dark Horse Hedge bought ½ position of Ingram Micro (IM) at $16.81 in its virtual portfolio.  We used Phil’s Buy/Write strategy to get into the position with a 15-20% discount as follows:

    Sold the Dec $17.50 call at $1.60 - now trading at $1.00

    Sold the Dec $17.50 put at $.90 - set to expire worthless

    This reduced the net purchase price to $14.31. 

    IM has been looking strong and we like its style -- earnings of $.41/share in the last 3 quarters. It's forecasting $.66 in the 4th quarter.  IM is trading at $18.55 today and so we will let the Dec $17.50 put expire next week ($.90 profit) and buy back the Dec $17.50 call for approximately $1 ($0.60 profit).  Now we can roll our Buy/Write strategy to March and earn another $2.30 lowering our net cost basis in IM to $13.01. 

    Buy to cover, IM Dec $17.50 call, next week at approximately $1

    Sell: IM March $17.50 call, next week at approximately $1.65

    Sell: IM March $17.50 put, next week at approximately $.65

    Dec 15 7:52 PM | Link | Comment!
Full index of posts »
Latest Followers

Latest Comments

Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.