G23ROCKS

The Test of Wills at Boeing

"Unions nearly always want their "fair share" when times are good, never wanting to give anything back when times are poor."

So true.

Options Trader: Wednesday Outlook

Phil, on May 28, you recommended buying BAC leaps at $4.70.

"This is good timing for Bank of America (BAC) [another one of our LTP holdings], who are exercising $1.9Bn worth of calls to up their stake in China Construction Bank (CICHF.PK) to 10.75% from 8.2% in China’s second largest bank. BAC’s original $3Bn investment in June 2005 is now worth about $30Bn. The 2010 $35 calls are just $4.70 and make a fantastic long-term investment."

Those calls are selling for $1.20 today (a 75% loss in a little over a month). I'm curious how you would handle such value erosion in long term calls that you've bought, e.g. sell, hold, average down, if your reason for buying has not changed. Thanks. I enjoy reading your posts.

Options Trader: Wednesday Outlook

I enjoyed the article. I agree on the unsustainability of $120+ oil. Why doesn't Bush just release some of the Strategic Oil Reserve to flush the speculators out of oil?... Without a serious correction in oil prices, the legacy carriers may face BK again.