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Expiration Week Turning out to be a Snoozer - or is it?

|Includes: BBBY, LVS, NTRI, Oracle Corporation (ORCL)

Pretty muted action on the day but we managed to still pull out some nice gains!  NTRI was one we had to patient with, a few weeks long.  We have a few more good ones cooking, but you can't get them unless you subscribe!  Take action - this is just the tip of the iceberg!  Click this link to make sure you don't miss any of these ideas!  I'll be looking to book some nice winners into the end of this year.

  • December 16, 2010
  • 08:38 | Bagger Vance NTRI ($21.87) Sold to Close NTRI 121810 20 C Dec 20 calls, at $1.85 +42%
  • 08:36 | Bagger Vance BBBY ($48.22) Sold to Close BBBY 012211 46 C Jan 46 calls, at $3.15 +83%

Markets continue to churn at higher levels, and I suppose at some point we'll see some volatility creep in.  For now, it's all systems go, fund managers continue to chase returns to finish this year.  Happy and I have spoken about this often over the past few months, and while there will always be trades on both sides of the market, the predominant wins have been the bullish variety - for now.  The leadership seems to be narrowing though, and with Tuesday's close a Hindenburg Omen occurred.  If you recall the same bearish signal hit in August - it ended on Oct 1 - how did that work out?  Not very well for the bears.  Breadth was good today as was turnover.  The rotation into different groups is healthy here - commodity stocks are looking to start a new leg higher.  My guess is we'll see new highs before the end of the year, possibly near the 1270 level on SPX.  Today's action had some major hits to the credit card names.

We have a HOT one with LVS calls, which we put on earlier in the session (and mentioned in the trading room).  We are also on ORCL calls, which had a blowout quarter and looks to be at least a bagger for us tomorrow.

Hit 'em straight!

by Bagger Vance