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Archive for October 20th, 2011

Weekly NP Strategy – OCT 28 Exp

Posted by mounddweller on October 20, 2011

Fellow Traders,

I have three picks for you this week from our Weekly NP Strategy.  None have looming earning releases.  Here are my three choices this week:

First up is Alcoa (AA).  AA has already announced 3rd quarter earnings.  It has declined steadily since hitting a 52-wk high back in April.  It seems to have found a bottom, closing at $8.90 back on October 3rd.  Will it retest this low before expiration next week?  Who knows?  However, I think it is a fair bet.

Next up is Hewlett-Packard (HPQ).  It doesn’t announce earnings until November 21st.  HPQ as you’re probably aware has had a terrible year.  Since late February it has fallen from the high $40s to a low of $22.20 back on October 3rd.  HPQ closed today at $24.74.  We can sell the $23 strike for $0.21.  Almost 1% for one week of exposure on a stock that is already down 50% this year seems like a reasonable bet to me.

Last up is Silver Wheaton (SLW).  SLW doesn’t report earnings until early November.  It closed today at $29.73.  It has not closed below the selected $25 strike price since November 15th of last year.

Well, that’s it for this week.  I’ll be back this weekend to look at our monthly Deep OTM Strategy results and also look at our November selections.





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