Today I went shopping for some option value and picked up some more energy and raw material stocks.
Trades:
I rolled my VSEA short call from $30 to 35, basically buying $5 of intrinsic value for $4.15 with the Dec. expiration coming in under two weeks.
I bought a Dec 105/115 WLL spread worth $8.64 for $6.65.
These short term trades should work out nice unless the market turns and stomps my head in. But I digress ...
Equity-wise, I bought more RES. I also moved into VALE and SMS. VALE's P/E is falling from 14 to 9 with triple digit sales and earnings growth. SMS has resurfaced (was MM - Metal Management) and has been going through some acquisition process - or not, and has no meaningful analyst coverage. I can see SMS with a forward P/E of 11. Maybe. Reader beware.
Reversal alerts: (5) of which ERES and XPO are interesting. We finally got our T2 script's alert on ERES since it has held its ground since bouncing off of the bottom two days ago. XPO is holding a P/E around 12 and has strong double digit sales growth, and growing institutional ownership (86% of institutional trades were buys; institutional ownership now at 43%).
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