We are adding the following recommendations to our February recommended list.
We are recommending credit spreads in the following issues. including one
of our current January issues.
BJ- BJS Warehouse offers an assortment of brand name food and general merchandise items within a wide range of product categories. In order to achieve high sales volumes and rapid inventory turnover, merchandise selections are generally limited to items that are brand name leaders in their categories. Since warehouse clubs sell a diversified selection of product categories, the company attracts customers from a wide range of other wholesale and retail distribution channels, such as supermarkets, supercenters, department stores, drug stores, and discount stores.
COCO - Corinthian Colleges, Inc. is one of the largest post-secondary education companies in North America, operating colleges in states in the U.S. and seven provinces in Canada. The Company's mission is to help students prepare for careers that are in demand or to advance in their chosen career. Corinthian offers diploma programs and associate's, bachelor's and master's degrees in a variety of fields, concentrating on careers in health care, business, criminal justice, transportation maintenance, trades and technology.
HOG - Harley-Davidson is an American motorcycle manufacturer. The company operates in two segments: Motorcycles and Related Products and Financial Services. The Motorcycles segment designs, manufactures and sells heavyweight touring, custom and performance motorcycles as well as a complete line of motorcycle parts, accessories and general merchandise. The Financial Services is engaged in the business of financing and servicing wholesale inventory receivables and consumer retail installment sales contracts.
THOR - Thoratec Corp develops, manufactures and markets proprietary medical devices used for circulatory support, vascular graft, blood coagulation and skin incision applications. They currently market the Thoratec Ventricular Assist Device System (called Thoratec VAD System or VAD System) and the HeartMate Left Ventricular Assist System (called HeartMate LVAS) in the United States and internationally for use as a bridge to heart transplant. They have also developed small diameter vascular grafts for use in hemodialysis access and coronary artery bypass surgery.
We are recommending the following specific credit spreads.
With the market pushing new highs the chance of some type of pullback
seems a strong possibility, when, if and how much remains to be seen.
Call credit spreads = bearish call spreads.
There are several times that I may make exception regarding holding positions through earnings reports. Three (3) of our four recommendations: COCO, HOG and THOR all will have earnings annoucement before expiration.
In addition here are a couple of ETF supplemental plays that you might
consider or watch before we start our March ETF portfolio
SUPPLEMENTAL ETF TRADES FOR FEBRUARY.
The following issues are a few ETF candidates to supplement your search for profitable option trades. As with any investment, you must decide if the selections meet your criteria for potential plays. Only you can know what strategies and positions are suitable for your experience level, risk-reward tolerance and individual outlook. There will be no commentary or analysis offered on these positions, nor will they be included in the MCM Portfolio. However, starting with March recommendations we will have a second portfolio made up entirely of ETF's and Holders, etc.