Courtesy of Scott Brown, Sabrient Systems and Gradient Analytics Mustang Sally Guess you better slow your Mustang down Mustang Sally Baby, I guess you better slow your Mustang down You been a runnin’ all over town I guess I’ll better put your big feet on the ground Oh, yes I will All you wanna do is ride around, Sally (Ride Sally ride) All you wanna do is ride around Sally, (Ride Sally ride) Buddy Guy In our last article ( September 8, 2012 ), we commented on the likelihood that the United States would follow the ECB in implementing a form of QE3, which in fact happened. It happened with such a magnitude that many “experts” have given the impression that Fed Chairman Bernanke “better slow (his) Mustang down.” The argument for or against QE3 is best left for another day, but I believe it is safe to say that the re-opening of the printing machine will help prop the market up in the short term, allowing us to make safer additions to our Dark Horse Traders’ Hedge long positions. SLM Corporation ( SLM ) or Sallie Mae, was recommended on June 25, 2012 at $14.95 by acquiring half the desired number of shares and selling the Oct ’12 $16 call (+$.55) and Oct ’12 $16 put (+$1.95). Incidentally, we also picked up a $0.125 dividend on September 20, 2012. Having watched the first Presidential debate of 2012, it was obvious that both candidates support education, and that is the sweet spot that SLM engages in by originating, acquiring, financing or servicing private education loans. Combine this with our new $40 billion per month printing machine, and I think we can safely recommend that we “Ride Sally ride” for another quarter. With nine trading days left before expiration, we should buy to close our current October positions and sell to open January 2013 at a higher strike, $17.50. The result will be spending $0.85 to buy to close the Oct $16 call and $0.15 to buy to close the Oct $16 put, allowing us to earn $1.50 plus the $0.125 dividend while holding our position in SLM which traded from $14.95 – $16.77. Now we can sell to open the Jan ’13 $17.50 call for $0.63 and the Jan ’13 $17.50 put for $1.47, bringing in…
Courtesy of Scott Brown, Sabrient Systems and Gradient Analytics
Mustang Sally
Guess you better slow your Mustang down
Mustang Sally
Baby, I guess you better slow your Mustang down
You been a runnin’ all over town
I guess I’ll better put your big feet on the ground
Oh, yes I will
All you wanna do is ride around, Sally
(Ride Sally ride)
All you wanna do is ride around Sally,
(Ride Sally ride)
Buddy Guy
In our last article (September 8, 2012), we commented on the likelihood that the United States would follow the ECB in implementing a form of QE3, which in fact happened. It happened with such a magnitude that many “experts” have given the impression that Fed Chairman Bernanke “better slow (his) Mustang down.” The argument for or against QE3 is best left for another day, but I believe it is safe to say that the re-opening of the printing machine will help prop the market up in the short term, allowing us to make safer additions to our Dark Horse Traders’ Hedge long positions.
SLM Corporation (SLM) or Sallie Mae, was recommended on June 25, 2012 at $14.95 by acquiring half the desired number of shares and selling the Oct ’12 $16 call (+$.55) and Oct ’12 $16 put (+$1.95). Incidentally, we also picked up a $0.125 dividend on September 20, 2012.
Having watched the first Presidential debate of 2012, it was obvious that both candidates support education, and that is the sweet spot that SLM engages in by originating, acquiring, financing or servicing private education loans. Combine this with our new $40 billion per month printing machine, and I think we can safely recommend that we “Ride Sally ride” for another quarter.
With nine trading days left before expiration, we should buy to close our current October positions and sell to open January 2013 at a higher strike, $17.50. The result will be spending $0.85 to buy to close the Oct $16 call and $0.15 to buy to close the Oct $16 put, allowing us to earn $1.50 plus the $0.125 dividend while holding our position in SLM which traded from $14.95 – $16.77. Now we can sell to open the Jan ’13 $17.50 call for $0.63 and the Jan ’13 $17.50 put for $1.47, bringing in…
