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Dark Horse Traders' Hedge
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Introduction to the Dark Horse Traders' Hedge The Dark Horse Traders' Hedge is long/short virtual portfolio written by Scott Brown, President at Sabrient Systems and Sabrient Holdings (recently acquired Gradient Analytics). It is a based on Sabrient System’s highly successful and popular... More
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  • March Option Update 1 comment
    Mar 16, 2012 3:17 PM | about stocks: JBL, HUSA, WNR, LDK, STX, XRTX, RDWR

    It appears that LDK Mar $5 put will require buy to close costing approximatley $.12. To continue earning time premium and working down our original cost basis I would recommend Sell to Open LDK Jun $5 put for $1.20.

    As I said in my last post, STK will be closed on the buy/write at $21 for a tidy profit. As will JBL at $21 and RDWR at $31.

    I discussed rolling up on the strike for WNR but given the market strength WNR has moved outside the range that I would recommend chasing it so I am recommending taking the profit and closing the buy/write at $16.

    XRTX Mar $15 call will be called away closing our position in XRTX, for now.

    Therefore, the only action needed today is to buy to close LDK Mar $5 put and Sell to Open LDK Jun $5 put.

    I will recommend replacements early next week for STK, JBL, RDWR, WNR and XRTX which all closed with nice profits.

    Watch HUSA on the bounce today for another chance to short. I wouldn't recommend shorting unless HUSA gets back to $10 but would point anyone to the balance sheet to review the "plenty of cash" statement made by the company in their update today.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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  • piccaso
    , contributor
    Comments (100) | Send Message
    Smart move on HUSA, short sheeple tend to get trampled.
    14 Apr 2012, 01:18 PM Reply Like
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