We are recommending the following credit spreads to start off the August option cycle.
We are recommending credit spreads in the following issues.
MDT - Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. The company?s Cardiac Rhythm Disease Management segment offers products for the diagnosis, treatment, and management of heart rhythm disorders and heart failure, including implantable cardioverter-defibrillators, cardiac resynchronization therapy devices, and cardiac pacemakers; AF products; diagnostics and monitoring devices; and patient management tools. Its Spinal segment provides medical devices and implants used in the treatment of the spine and the musculoskeletal system, such as thoracolumbar, cervical, and biologics products; and minimal access spinal technologies platform that facilitates spinal surgeries. Medtronic?s CardioVascular segment offers percutaneous coronary and peripheral vascular interventions; endovascular stent grafts; arrested heart surgery and beating heart surgery equipment; surgical ablations; and surgical heart and transcatheter heart valves. The company?s Neuromodulation segment provides neurostimulators for chronic pain; implantable drug delivery and deep brain stimulation systems; and urology and gastroenterology devices.
RIMM - Research In Motion Limited (RIM) designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. The company, through the development of integrated hardware, software, and services, provides platforms and solutions for seamless access to time-sensitive information, including email, phone, short messaging service, and Internet and Intranet-based applications and browsing. Its products and services principally comprise the BlackBerry wireless platform, the RIM Wireless Handheld product line, software development tools, and other software and hardware. The company?s BlackBerry smartphones use wireless, push-based technology that delivers data to mobile users? business and consumer applications. Its BlackBerry smartphone portfolio includes BlackBerry Bold series, the BlackBerry Torch, BlackBerry Curve series, the BlackBerry Style, BlackBerry Storm series, the BlackBerry Tour, BlackBerry Pearl series, and the BlackBerry PlayBook tablet. The company?s BlackBerry enterprise solutions comprise BlackBerry enterprise server, BlackBerry enterprise server express.
BRK-B -Berkshire Hathaway, Inc. is a publicly owned investment manager. Through its subsidiaries, the firm primarily engages in the insurance and reinsurance of property and casualty risks business. Berkshire Hathaway was founded in 1889 and is based in Omaha, Nebraska.
AEM - Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties. It explores for gold, silver, zinc, copper, and lead. The company holds interests in the LaRonde mine, the LaRonde mine extension project, the Goldex mine, and the Lapa mine in the Quebec region; and the Meadowbank mine and the Meliadine project in the Nunavut Region in Canada, as well as the Kittila mine in Finland; and the Pinos Altos mine located in northern Mexico. As of December 31, 2010, its land holdings consisted of 78 projects comprising 2,911 mineral titles covering an aggregate of 222,825 hectares in Canada; 11 properties consisting of 3,058 mineral titles covering an aggregate of 26,176 hectares in the United States; 3 groups of properties comprising 136 mineral titles covering an aggregate of 11,949 hectares in Finland; 3 projects consisting of 43 mining concession titles covering an aggregate of 58,340 hectares in Mexico; and 1 project with 2 mineral titles covering an aggregate of 2,691 hectares in Argentina.
We are recommending the following specific credit spreads.
Call credit spreads = bearish call spreads.
We will be addressing the disposition of the good, the bad and the ugly
on Sunday,in regards to the July positions. July looks to be one of those months that you have to take a deep breath and take your lumps and go back to the drawing board.
Historically I have taken the "Hits" and continued on.
This will probably be the path I will take considering these July positions
that have went astray this month.
I believe eventually you can't keep kicking the can down the road (unlike what our Federal government is attempting to do.)
However, I will be offering alternatives for those who desire to try and
salvage the trades that have currently went bad.
These alternatives could reduce the amount of the losses by buying time, by kicking the can down the road, however these alternatives do not come without
consequences if we are wrong.
We will examine several of these alternatives for our July positions that are underwater tomorrow so you have some choices to consider.
As mentioned above we will probably decide to bite the bullet, but I will lay some alternatives out there for you tomorrow.