Archive for January, 2011

January options expiration

January 23, 2011

This is going to be long and involved, so grab yourself a cup of your favorite hot beverage before we slog through this.

I had a number of short stock positions that were hedged with January calls. These were being held for put writing. There were a total of 8 of these that closed out as the January calls were exercised.  The gain or loss numbers below do not include premium received for previously expired calls or puts written during the life of the position (since these gains were reported earlier).

NE -1.37

T +2.12

BMY +0.22

KO +1.69

HON +0.20

JCI +0.10

LLTC +0.63

BTU -1.22

The call spread on AMAT (long Jan 10s short Jan 14s) closed out at +1.28

The put spread on HD (long Jan 22.50s short Jan 25s) expired for +1.04

I exercised the long calls on BAC (Jan 12.50s). For ease of record keeping, let’s say the calls were a total loss (-6.01) and I am long the stock basis 12.50. Note that I am not including proceeds of BAC calls written that expired earlier.

I exercised the long calls on TEVA (Jan 50s). Loss on the calls was -11.51 (not including proceeds from earlier call writes) and the basis in the stock is 50.

My long position in ADBE was called away as I was short Jan 29 calls. Total profit on the position was +1.75

What’s left? Not much. A long position in CHK on which I’ve written July 27 calls. Long position in GE with June 19 calls written. Long position in MET with March 47 calls written.

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Road wins rolling in

January 23, 2011

The Blue Jackets collected 3 points in the Sunshine State with a shootout loss in Tampa and an overtime win at Florida. In the latter game, Columbus gave up two quick goals before rallying. RJ Umberger scored in the last minute of overtime.

Columbus gave up two quick goals again last night in St. Louis. But then the Jackets scored 5 times (including an empty-netter) for a 5-2 win. Columbus is 4 points below the line with a home game with Anaheim before the All-Star break.

After an easy home win over Iowa, the Ohio State men headed out for the first of many tough Big Ten road games. The Buckeyes fell behind Illinois 50-42 before running off 14 unanswered points. Final score Ohio State 73 Illinois 68. Jared Sullinger had 27 points and 16 rebounds.

The Ohio State women also won at Illinois for their first road win of the Big Ten season. The Bucks evened their conference record at 3-3. Next up: home games with Iowa and Michigan. The Bucks will be looking for revenge for road losses against both.

The Kentucky women went to Gainesville and beat Florida 59-58 for their first SEC road win of the season. Victoria Dunlap hit two free throws with 10 seconds to go to seal the deal. Both the Cats and the Gators had 10-point leads at various times in the game. The Cats are at home this afternoon to play visiting Vanderbilt.

The Kentucky men had a two-game road trip with mixed results. Tuesday night the Cats fell 20-points behind Alabama. A furious comeback fell short as the Tide won by 2. At South Carolina last night, the Cats had control for most of the game, although the Gamecocks made it close late. Final score 67-58 UK.

A trip to Florida, but not a vacation

January 18, 2011

The Columbus Blue Jackets are visiting the Florida teams tonight and tomorrow night. The Jackets may be on the verge of a turnaround after a decent showing over the weekend.

Columbus has scored the first two goals in the last three games, but the final results have been mixed. Phoenix left Ohio with a 4-3 win last week.

The Jackets’ hot start to the season cooled dramatically in a 2-game series with Detroit in late November. So, I wasn’t too optimistic about another weekend home-and-home with the Red Wings.

Friday night, the Wings evened the game at 2-2 quickly, then the goaltenders ruled the roost through the rest of regulation and overtime. Antoine Vermette had the only goal in a 4-round shootout for a 3-2 win.

Saturday, it was 5-5 going into overtime. Detroit’s Johan Franzen scored 45 seconds into the overtime for the 6-5 win. Detroit has a lot of players hurt, and goaltender Joey MacDonald had to be called up from the minors.

Columbus is six points “below the line” in the west, and need to get things going soon.

Ohio State men ranked #1

January 18, 2011

The Ohio State men’s basketball team is ranked #1 in both major polls this week for the first time since the 2006-2007 season. Bob Baptist of the Columbus Dispatch mentioned in his blog that the Bucks were #1 in the last poll that season, before going into the NCAA Tournament and losing to Florida in the championship game. Before that, Bob says you have to go back to 1962 to find OSU at the top of the polls.

OSU has been somewhat unimpressive lately. The schedule has been somewhat soft too, with more ranked opponents coming up in the near future. There will be a whole lot more ESPN/ESPN2 appearances as well, starting a week from tonight.

The Kentucky men had big wins over Auburn and LSU to go to 2-1 in the Southeastern Conference. The Cats are ranked #12 in both polls this week.

 

Are the women’s teams back to normal?

January 18, 2011

The Ohio State and Kentucky women’s teams got their conference schedules off to a rocky start.

After losing at Arkansas, the Cats lost a home game to Georgia, snapping a long streak of home wins. But then Kentucky routed both Mississippi State (which is trying to recover from losing 11 players from last year’s team) and South Carolina. The Cats were behind SC early in the second half but won going away. UK takes its 2-2 SEC record on the road to Gainesville Thursday night.

With the way Ohio State has been playing I wasn’t optimistic about the Bucks’ chances against #9 Michigan State Sunday. But the Spartans were turned away 67-53.  OSU is 2-3 in the Big Ten, and in danger of breaking the string of 6-straight Big Ten regular-season championships. The Bucks have yet to win on the road in the conference.

Rough weekend

January 9, 2011

Disastrous weekend of sports.

Columbus lost both its games in southern California and have now lost 4 in-a-row. The Jackets have yet to record a win in 2011. It appears that Mike Commodore is basically off the team. He cleared waivers and may either be traded or sent to the minors.

Georgia got the best of Kentucky. On the men’s side, the Bulldogs beat the Cats 77-70 and in the women’s game the Dogs prevailed 61-59. That ended a streak of 25-straight home wins for the UK women. The Kentucky teams are a combined 0-3 in the Southeastern conference.

The OSU women lost on the road again, this time at Iowa. It was a bit of a revenge game for the Hawks, as in last year’s Big Ten Tournament championship, the Buckeyes came from 16 points behind to beat Iowa.

In the only win of the weekend, the Ohio State men held on to beat Tubby Smith and Minnesota 67-64.

Almost forgot the bowl game. In the BBVA Compass Bowl Saturday, Pittsburgh beat Kentucky 27-10. The Cats finished 6-7 for their first losing season in several years.

 

Happy New Year!

January 3, 2011

Happy New Year to all readers. I hope 2011 is your best year ever.

The UK men picked up a nice win in Louisville 78-63. At the start of the year, the center position looked like the weak spot for the Cats. Senior center Josh Harrellson had a career-high 23 points, showing how much he has developed during his time at Kentucky. Coach Calipari says he has received NBA queries about the big guy, who was a bench dweller until recently.

The UK women had back-to-back games last week, but it was no problem as the Cats beat Middle Tennessee and Tennessee-Martin. Tomorrow the Wildcats visit #3 Duke.

The OSU women almost always have a slump every year, and they seem to be in it now. The first surprise was the loss at Syracuse in mid-December. Losing to Connecticut was not a surprise (although Stanford ended the Huskies’ 90-game win streak recently). Then a home loss to Duquesne was a real head-scratcher. The Bucks then lost their Big Ten opener at Michigan by 13 points. That ended a streak of 14 wins in-a-row over the Wolves. After a 48-point win over Bethune-Cookman, Ohio State returns to Big Ten play Wednesday against Indiana.

Speaking of Indiana, the OSU men remain undefeated after opening the Big Ten with an 85-67 win in Bloomington. I thought the Bucks were a bit soft on defense at times, but a win is a win. Ohio State is in Iowa City Tuesday night.

Mathieu Garon didn’t last long as the Blue Jackets’ starting goalie. Steve Mason has started all the games since Christmas and Columbus did manage three wins in-a-row. Last night, however, the Jackets lost in Nashville for the 15th straight time.

For the stock market in 2011, we have to keep in mind that we have come a long way up. It is certainly true that we look overbought by many measures. One positive thing, though, is that valuations continue to look quite reasonable, with many great companies selling at historically low PEs. Don’t chase stocks, but I think any corrections are probably pretty good buying opportunities.