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I used to run a limited partnership, boutique hedge fund in the 90s. Retired in 2000 and moved from New York City to Toronto, Canada, got married, raised a family and basically settled down. After a few years in Toronto, my wife got tired of the city’s 8 months of cold weather and insisted that... More
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  • Portfolio Update 5/4/2013 1 comment
    May 4, 2013 10:13 PM | about stocks: AAPL, CSCO, FSLRQ, VIAV, JNPR, LDK, QCOM, S, SPWR, TSL, SUNEQ

    As per my game plan which was telegraphed here on my blog yesterday before the market's open, I exited out of my positions in GTAT options and increased my position in MEMC Electronics (stock symbol: WFR) CALL options...As I had explained, my decision to sell out my GTAT CALL options was strictly strategic and in no way diminishes my enthusiasm for the company's prospects going forward...However, based on their earning's conference call on Thursday, I believe that GTAT's stock price won't appreciate as quickly as WFR's...and since my Options2Wealth public portfolio will close shop in less than 2 months on June 28th, 2013, I, based on various factors, made a strategic decision to exit out of my GTAT CALLS, at a small loss in fact, and used the generated funds to increase my portfolio's exposure to WFR.

    Immediately after I posted my decision here, I sold 147 contracts of GTAT September 2013, $2.50 Strike Price CALLS @ $1.35 and I also exited out of my 200 contracts of GTAT September 2013, Strike Price $5.00 CALLS @ $0.30.

    After the 2 sales, I had a little over $25,000 cash which I immediately used to buy 570 contracts of WFR's out of the money July 2013, Strike Price $6.00 CALLS @ $0.44...

    As can be seen from the screen shot of the enclosed Excel spreadsheet, my Options2Wealth portfolio is now almost 100% invested in various CALL options and its current total value is $190,000+, up 1800%, with a little over $100 in cash...

    (click to enlarge)

    So why am I so bullish on WFR?

    The answer is very simple...After SunPower's very robust sales and earnings report that handily beat every single analyst's most rosy forecast, even the most diehard skeptic is now beginning to appreciate the size of the solar power tsunami that is sweeping the world...And since Japan is white hot for solar power and MEMC's SunEdison unit has just signed a joint venture agreement with Toshiba, I believe that when MEMC announces its earnings' report on May 9th, its forward looking statements will pretty much echo the sentiments expressed by SunPower's management...

    And technically, WFR stock's PnF chart is looking darn good...

    (click to enlarge)

    As can be seen from the chart above, a mere 50¢ move to $6.00 will signal a break of a triple top that dates all the way back to February of 2012...I believe that not only will WFR break this triple top, but it will also pierce through its Bearish Resistance Line, shown in red, and this could happen as soon as this Thursday, if the earnings and forward looking statements are as bullish as I suspect them to be...Once WFR prints $6.50, this stock should, during the next 6 months, make a move towards $15 ...with intermediate stops of course...

    Based on all of the above, I felt that putting more eggs in WFR's basket, may be just what the doctor ordered...

    We shall see...


    DISCLAIMER: All postings made here are strictly for my personal record keeping and in no way, shape or form, am I even remotely suggesting others to follow my Buy and Sell moves. Trading options is definitely not for the faint of heart as one's portfolio can move up, or down, anywhere between 10%-30% during a single trading day. Feel free to follow my progress here, but PLEASE do not follow my moves. However, if, in spite of all my exhortations, should you decide to do so, be advised that you, and ONLY YOU will be responsible for any losses that you may suffer...In other words, the onus is strictly on you. On the other hand, if the move(s) result in a profit for you, I am open to discussing a split. ;-)

    Disclosure: I am long GTAT, LDK, S, SPWR, TSL, WFR.

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  • Invest2Win786
    , contributor
    Comments (13) | Send Message
    Vow, 1800% in 4 months, that's a remarkable feat in itself. I manage money for myself and I've gotten decent results, but not anywhere comparable to these. This blog has certainly changed the way I approach investing, and the 5 step criteria for picking stocks listed in one of your earlier posts is very valuable for anyone looking to generate BIG MONEY. As a fundamental analyst myself, I must state I was skeptical of Technical Analysis in the beginning, but kudos to you for proving your methods and documenting your results for all to see. I'm an avid reader of Investment Literature, from Ben Graham and Philip Fisher to Peter Lynch and Cramer, and I can't wait to check out your book as I'm sure it'll be a valuable addition to the list, but more importantly a tool to generate more wealth!!
    10 May 2013, 10:14 PM Reply Like
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