It is Monday morning and as I write this, I, like some other investors, are waiting the news on CAT. The company isn’t going to go bankrupt or go away however I think there is some room for drift and drop. My own take on the subject is well known, I have some covered calls and even more puts on the stock. There may even be more gloom and doom economic news that will send the stock down further. As a person who is shorting the stock, I wouldn’t mind if the stock dropped but as a professional I wish that the market would turn around. I wish that businesses would hire more people and do it faster. All I need is a magic lamp and I will be set.
Without the benefit of magical help from a jinn (you know them as genie in English stories), the way for me to cautiously proceed is through covered calls and puts. I almost wrote that last sentence as “putts” and that particular golfing term isn’t too far off because of the swings in the market. The net result after a few weeks is that there has been some movement, just generally not alot.
In the case of CAT, I think there will be a move and then a brief rally and then, barring President Obama and Congress actually getting something passed immediately that will benefit CAT, the stock will start drifting down. Everything else has been follownig suit so I figure, why not CAT? I have plenty of time (as of this post) to close positions on options and move on if I want to.
There may also be some bad news about something, anything on Monday and that could drive the stock down further. Be it an earthquake somewhere (though you’d think they would need bulldozers to dig things out) or a tidal wave or just more bad economic data from anybody. I hate to wish things from dropping down or up but it is human nature to want things to go your way and you certainly don’t need a genie to do it – though if I had one, I wouldn’t be upset either.
In any case, have a great Monday everybody!
Interested in any of my books? You may want to make a stop over here. Please click through to purchase my books and some other interesting items that actually ARE on sale. If you like poker, Heroes (the TV series), comic books, Watchmen, etc, there may be some fast links to get you to what you are looking for. Have you read my book, “Bad Tax Idea, Good Tax”? Please order it today. The tips inside can save you hundreds if not thousands of dollars!
If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed below. Part of all the proceeds from the sales of that book go to Rett Syndrome research. One girl is born with Rett Syndrome worldwide every fifteen minutes. My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime. Boys born with the Rett gene generally die at birth.
Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement
Kim Isaac Greenblatt
Monday Economic News and CAT investing