jeff the genius'  Instablog

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Rightwing Comments (123)
 
Nice job on 4-1...will you be posting your picks daily? and what time do you post if you are?
2 Apr 2011, 01:27 PM Reply Like

jeff the genius Comments (9)
 
Thanks, I generally will post a play of the day by 11:59 pm the day before.
3 Apr 2011, 11:53 AM Reply Like

Rightwing Comments (123)
 
A couple of more questions.. Do you always play the option and not the stock ?.. and do you carry positions overnight?
Thanks again...
3 Apr 2011, 12:14 PM Reply Like

jeff the genius Comments (9)
 
That depends. Sure I carry positions overnight but vever over a weekend. Options are great money makers because of their volatility. Buy low and sell high and never be greedy! Sure, I buy stock but I love to buy just the option and keep it for as long as a week. Never keep an option if you see it turn in completely the oposite direction. Take the loss, stop the bleeding, I always say. For the most part, you will see that my plays will make you money. I like BA May $75 Calls. You might see BA drop tomorrow on the news of the FAA inspections, but read by Instablog and you will get the drift of why I like the play.

Great profits to you,

Jeff
5 Apr 2011, 02:36 AM Reply Like

jeff the genius Comments (9)
 
Hi Rightwing,

Don't panic, the stock was solid as a rock until 1:00 pm or so. I figured we would be in for a couple of bumps on the news. Hence, the May Calls was a good move. I new about the FAA and the whole "crackpot" stuff. What I was a bit surprised at was the number of units that were involved. But I'm not going to believe a hypothetical, subjective article. "What if," they say, hundreds of planes are involved? Let me tell you something, a stable solid stock like BA, up over 13% in three months and is moving like this stock is (gradual, incremental changes), will never ever be beaten by a silly occurrence like this. Southwest, completed the inspections on their whole fleet and only found 5 planes with this potential "crack" hazard, in a couple of days. Nothing to worry about, it will bounce back quick and this time it is moving past $80 by May 1st.

Jeff
6 Apr 2011, 03:41 AM Reply Like

jeff the genius Comments (9)
 
By the way, watch it get bought back at $71.50 like hotcakes. Don't panic if we shed another $1-$1.25 today. I saw the "market depth" on this stock and it's got so much support at that figure that Thurs, Friday it's back at $73.50-$74.50.

Jeff
6 Apr 2011, 03:46 AM Reply Like

jeff the genius Comments (9)
 
Oh and check out this article by Tim Beyer on the 5th:

"Southwest will still outperform the market"

"Of all the frightening words that populate the world of commercial aviation -- "delay" and "lost," to name two -- none are more petrifying than "malfunction." Southwest Airlines (NYSE: LUV) has suffered three in the past week, and as a result, it's fallen under the watchful eye of inspectors from the Federal Aviation Administration (FAA).

On Friday, Southwest Flight 812 from Phoenix to Sacramento lost cabin pressure when cracks in the fuselage opened into a five-foot-wide hole. The flight landed safely, and Southwest began a program of intensified inspections the next day, resulting in roughly 370 cancelled flights.

But getting aggressive has also yielded benefits. As of Sunday, the carrier was able to confidently return to service 19 of the 79 Boeing (NYSE: BA) 737 jets under inspection. Checks on the remaining aircraft were due to be finished today; 57 had been cleared as of last night. Two have shown subsurface cracks in need of repair.

For investors, Flight 812's emergency landing and the subsequent inspections raise questions over whether Southwest needs to modernize its fleet. If so, the company's edge over United (NYSE: UAL), JetBlue (Nasdaq: JBLU), or Delta (NYSE: DAL), its closest peers, in returns on capital and equity could fade for a time. Rest assured that these companies will all make concerted efforts to take their piece of Southwest's market share. With the competition inherent in the airline industry, any weakness for a company becomes an opportunity for its competition.

However, I'm not so sure that this even matters. Southwest's culture of service -- its competitive edge -- shows no signs of changing. According to passenger reports I've read, airline employees are personally reaching out to affected customers. The effort seems to be strengthening bonds that were tight to begin with.

Passenger Julian Huerta told a reporter from Austin, Texas TV station KXAN that he didn't even consider rebooking a cancelled Southwest flight on another carrier. Want to bet that he isn't the only one?

Now it's your turn to weigh in. Let us know what you think about the incident, the airline's capital spending needs, and Southwest's service using the comments box below.

The Motley Fool recently introduced a free My Watchlist feature that allows users to stay ahead of the curve and receive the latest news on companies like Southwest Airlines, or any of its competitors. " (article published by Tim Beyer, April 5th, 2011)

LUV will and so will BA for the next month. It might not be so bad tomorrow as I expect, we might actually bounce back by close of business, God willing.

Jeff
6 Apr 2011, 04:07 AM Reply Like

Rightwing Comments (123)
 
Great.. I'll keep an eye out. Thanks.
3 Apr 2011, 12:12 PM Reply Like

jeff the genius Comments (9)
 
Hello, Rightwing!

You have a powerful screen name, I like it! I will be posting an instablog this morning on Boeing. I picked up a bunch of May $75 Calls at $1.70 today. Read the article, if you get a chance, and let me know what you think.

Profitable trading wishes to you,

Jeff the Genius
5 Apr 2011, 12:09 AM Reply Like

Rightwing Comments (123)
 
..haha.. thanks.. i was in BA calls yest.. the news late in the day spooked me out.. I'll watch for some dips to get back in.. thanks
5 Apr 2011, 12:19 PM Reply Like

jeff the genius Comments (9)
 
I don't know what I did but I blocked you by mistake. Any way to correct that?
8 Apr 2011, 11:09 AM Reply Like