Today was another great session for market bulls as stocks continued to rally in the wake of favorable earnings and falling crude prices. The Dow Industrials closed up 62 points at 10,551 while the tech-heavy NASDAQ gained 6 points to 2,068 and the broad S&P 500 index added 8 points to finish at 1,189.
Of course, the OW portfolio benefited from the upside activity in the majority of positions, however one issue did not participate in the buying frenzy. Global Crossing (NASDAQ:GLBC) slid $3 to 20.50 amid heavy trading volume after it was highlighted in a Forbes.com column as a stock that was "headed-for-a-fall." Read the full article here:
Despite the unexpected sell-off, our position remains comfortably profitable with a cost basis of $14.70. At the same, those investors who believe the bullish trend is over for the near-term might consider closing the play now for a small profit ($0.05 - $0.10 credit). In either case, we will continue to monitor the issue in the coming week and take action as necessary to prevent any loss in the position. With quarterly earnings due sometime near the February options expiration, this is definitely NOT one to put on the back burner!
Traders who are interested in "New Plays" should check OW website (or their E-mail Inbox) this evening as we will be scanning the charts and searching the option lists for some favorable candidates.