OK, I present to you my Royal Screwup Of The Day: General Motors. As some of you know, there’s nothing quite so painful about being correct on a trade and yet losing money on it. This is one of those times for me.
I have been bearish on General Motors for a variety of reasons. They came out with their earnings this morning. The Street loved what they heard. They bid the stock up massively (relatively speaking; we’re talking about General Motors, after all). (more…)
In a post earlier this week, we looked at hedging one widely-traded stock that was within a few cents of its 52-week high, ADM (“Downside Protection For ADM”). Another stock in a similar position Wednesday was Intel (INTC). Shares of Intel rose fractionally Wednesday, closing at 26.98, within a few cents of their 52-week high of $27.12. (more…)
In a post on Monday (“VXX Sucks”), our host Tim noted the double digit move in the VIX (though not in VXX, which has made longs’ money evaporate since inception) on the day. With volatility getting a mild bump, I thought I’d take a look at the hedging costs of a few widely-traded stocks trading near their 52-week highs. Agricultural powerhouse Archer Daniels Midland (ADM) was one that was relatively inexpensive to hedge. Here are two ways of doing that over the next several months. (more…)
One of the bigger losers on Friday, when the Nasdaq lost 110 points, was Facebook (FB), which dropped 4.61% to $56.75, a buck and change away from the near-term bottom target for the stock hedge fund manager and market technician Tim Knight highlighted in a recent post (“Social Targets”). (more…)
Shares of Netflix (NFLX) dropped nearly 7% on Monday, as Carl Icahn told CNBC that he may have sold half of his Netflix stake. In a post last month (“Investing alongside Carl Icahn while limiting your downside risk”), we presented a hedged portfolio constructed out of the holdings of Carl Icahn’s Icahn Enterprises (IEP) by the automated portfolio construction tool at Portfolio Armor. That portfolio included a hedged Netflix position, circled below. (more…)