The portfolio looked extremely well on Monday, even after the down day, so you would expect after being up almost 200 points we would be safe. Instead we have a few issues to ride out SBAC and ELN look like they may be okay. ELN $14.44 eventhough on our WATCH list it is still almost $2.00 away from our short position and only $0.06 cents from being taken off the list (WATCH LSIT PRICE 14.50.) Even SBAC today closed above $23 at the $23.26 price and looks a lot safer.slightly under our WATCH LIST target of $23.50, but is still $0.76 away from our short strike price.
However TOPT causes me a little concern for its free fall after the Dividend distributions. We might have to act sooner than the 3 days until expiration. Tomorrow will tell us alot.
Even RMBS over $21 points oout of the money is a concern as the 25 strike still has $0.20 - $0.25 cents left in premium and has held that premium for the last 10 trading sessions. I can see a big sell off here, but 20 points in three days even with earnings...I have to believe would be hard. But I am still watching.
CAL who was cruising over $27 a few days ago, now has the scent of higher oli prices sitting on top of it ( would not be too bad , but earning come out Thursday. )...I hadn;t plan to deal with either RMBS or CAL over an earnings period, but sometimes situations present itself and we go on, as stated earlier we will be holding RMBS, I have not decided on CAL as of yet. We will be watching CAL's action closely tomorrow So let's watch these two positions as well as SBAC and ELN.
APRIL WATCH LIST UPDATE for 4-18-06
TOPT GOES ON THE WATCH LIST - SBAC and ELN still remain on LIST.
WATCH LIST ACTION on 4-18-06
TOPT (added to watch list)...after all those dividends it seems the stock has nothing left to support or justify its falling stock price ( currently $7.78)...We need some support here or TOPT might be challenging our short position before expiration if not sooner. If TOPT still acts soft tomorrow, do not be surprised if I pull the plug and exit the position. Let's wait and see.
ELN (remains on Watch List) with close @ 14.45 still slightly below WATCH LIST target price of $14.50,
SBAC - (remains on WATCH LIST) ( closed @ $23.23 and remains on our WATCH LIST as it remains under the target Price of $23.50.
APRIL WATCH LIST - CURRENT as of 4-18-06
MAY RECOMMENDATION UPDATE -
We will hold off for tonight in giving our any additional MAY RECOMMENDATIONS until we see how this nearly 200 point up day plays out tomorrow. We have two (2) in OMG and PAY currently.