Archive for October, 2006

Oh my God! They deleted Kenny!

October 30, 2006

YouTube, the video sharing site purchased by Google, is removing Comedy Central clips. No more Southpark and no more Colbert Reports! There goes my reason for visiting YouTube.

Seems like Google is buying YouTube just to destroy it as it cannot stand YouTube overtaking Google Video. Can’t be though… Google is too smart to do anything dumb. Something smells here but what is Google cooking?

Ā I just realised this post has nothing to do with options trading… but heck! This is my blog! I can do what I want! šŸ˜›

MEMC (NYSE:WFR) buying opportunity?

October 30, 2006

MEMC is a strong company in a strong industry but suffered a 15% drop on earnings releaseĀ last week. If it drops to $30, I am going to buy all I can.

If it sticks around $35 for a few days, please remind me to buy a 35/40 bull call spread again šŸ˜›

If you wonder why I love bull call spreads, I guess its because I only research stocks which I think are strong companies with strong growth potential and so I am usually bullish on stocks I cover in my blog. And why spreads? Spreads are cheaper to buy and I love to buy cheap stuffs. Haha.. actually, its just that I can’t bear toĀ fork out $3500 for 100 shares of MEMC but spreads allow me to pay just over $200 for the same amount of shares. Leverage is such a cool thing.

Akamai to $50 again!

October 30, 2006

Shares of Akamai were hit hard when they beat estimates and upped guidance for 2007 during the earnings call last Friday.

Guess its time to buy my favorite bull call spread again. The DEC 45/50 bull call spread certainly looks attractive now. Akamai can never stay in one spot for too long and should hit 50 againĀ in no time soon.

Riding Google to $540 the risk-free way using options!

October 29, 2006

Think Google (NASD: GOOG) stock may go up to $540 soon? Perhaps in one year’s time? Pretty good likelihood considering the manner in which they beat earnings estimates.

With Google currently trading at $470 a share, you can purchase an at-the-money $470 JAN ’08 put for $52 and simultaneously sell out-of-the-money $540 JAN ’08 covered call for $53.

This is a risk-free method of placing this bet and its known as a costless collar. Learn more about this strategy here.

TIVO – It’s now or never!

October 28, 2006

As the end of 2006 draws nears, the time has come for whether TIVO will ever make it big. Internet broadband video and movies on demand are currently hotter thanĀ they’ve ever been with Google gobbling up YouTube, it seems like a company like TIVO should be going somewhere.

With the Comcast rollout coming soon,Ā I have picked upĀ some $7.50 FEB 07Ā options as a gamble. If this stock doesn’t go anywhere by then, its time to say goodbye to TIVO forever! Been longish on TIVO for over 3 years now… been very patient already šŸ˜›

OPEC supply cuts and alternative energy stocks

October 10, 2006

Looks like the recent slide in oil prices should be coming to an end. Perhaps it is a good time to take a look at some alternative energy stocks which have taken a beating recently.

The NOV 22.50 call options for Suntech Power (NYSE:STP) definitely looks attractive to me now! A quick swing to the 30s after earnings annoucement looks very possible.

Google YouTube marraige good for Akamai?

October 10, 2006

Bought anĀ OCT 45/50 bull call spread on AKAM two weeks back and just today, Google announced an acquisition of YouTube. I wonder if I should be worried.

On the one hand, Google is using Akamai for content delivery and YouTube using Limelight which is being sued by Akamai for patent infringement. On the other hand, Google might actually choose to build its own content delivery infrastructure since video serving is such a broadband hog and Google has the means to do it.