John R. Conway's  Instablog

John R. Conway
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I currently work full-time as a chef and enjoy investing in the day time. I am a graduate of the University of Missouri-Saint Louis and reside in Saint Louis. I enjoy trading stocks and options and prefer to use deep in the money calls as a stock replacement strategy. When I am not investing I... More
  • June Performance 0 comments
    Jul 9, 2012 12:28 PM

    The summer is generally not my favorite time to invest and historically over the last couple of years I tend to be neutral during the summer. There is still constant news about Europe and other concerns over global slowdown and with that I am still sticking to my game plan of large cap US only stocks with little or no overseas exposure. My favorite picks since the beginning of the year have been AT&T (NYSE:T) and Altria (NYSE:MO) and despite the mixed markets these 2 stocks have been going higher ( even on down days). Lets take a look at my June calls:

    1) Facebook (NASDAQ:FB) = I recommended to stay away from Facebook until the hype has died off and Facebook isn't on T.V. everyday. When I wrote about Facebook the stock was at $27.72 and now the stock trades at $32.82 Looks the hype/pessimism has faded away and though I am not a Facebook user, I like the stock, but for speculation only until some financial data comes out. I currently have not position on Facebook, but would consider using OTM calls that are at least 3 months from expiration as a cheap speculation trade.

    2) XLI industrial etf= This ETF has struggled with the 35 level and I recommended the July 33/30 vertical put spread for $83. Since this date the ETF hasn't moved much and I believe the 35 level will be a level this ETF will struggle with. This is not one of my greater picks as time decay basically killed this trade as the trade is now worthless.

    3) Ritchie Bros. (NYSE:RBA) Who doesn't like a auction. I wanted to focus on niche market plays or names that are not wildly known. One of the main reasons I like Ritchie Bros is that at their auctions they are mostly no reserve and everything gets sold. Their business model is simple and easy to understand. I recommended the stock at $19.85 and now the stock is at $21.51 I am still slightly bullish on the stock as the company can be described as somewhat economic resistant. No options play

    4) United Rentals (NYSE:URI) Another niche play since its simply cheaper to rent large equipment than buy it. When I wrote about URI on June 22 the stock was at $33.43 an now the stock is at $34.34 Not a big gain, but if economy picks up any steam shares of URI will climb higher. No option play

    Once again thanks for the comments and for reading the articles that I have presented for you. Feel free to message me anytime with any questions/comments as I will always answer you in enough details as I can possibly provide. For July and August I am going to continue to be cautious since last year during this time the market wasn't doing so great and we could possibly repeat the past. For July and August I will be writing/trading options on what has been working for me and the market. Stay tuned and thanks again.

    Disclosure: I am long MO, T.

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