Time to Buy or Another Selling Opportunity?
As far as the activity in our educational portfolio, two positions (EGY and PGI) are performing as expected and one position (CCC) is faring reasonably well, considering the recent volatility.
The current status of each (hypothetical) trade is as follows:
LONG EGY Stock and SHORT MAY-5.00 Call
EGY stock closed at $5.58 on 4/4/08, thus no action is needed.
LONG PGI Stock and SHORT MAY-$15.00 Call
PGI stock closed at $14.88 on 4/4/08, thus no action is needed.
CCC stock closed at $15.49 on 4/4/08. The CCC position has been rolled down and forward to the JUL-$15.00 strike due to previous unfavorable price activity. Traders should now monitor the underlying issue for any move that breeches technical support near $14.00. A close below that price should signal an exit in the position for all but the most optimistic investors.
LONG KGC Stock and SHORT APR-22.50 Call
KGC stock is trading near $23.36 as of 4/4/08, however the position has previously been closed due to short-term bearish activity.