First, I hope that me good friend Ragin Cajun is boarded up well in his home state of Louisiana before Gustav touches down in their area. Better if he move to safer ground.
Every now and then comes a moment when either we decide to stand aside or put our money where conviction is. This is one of those moments when I just have to put my money where my mouth is. I'm currently loaded with stocks and the current month call options on several hurricane stocks in preparation for the coming of Gustav to the gulf area.
This is a very calculated move where if I'm right, it will add plenty to my gains this year and if not, well, I will give up about 1/4 of my gains this year.
4 comments:
I was thinking of loading up on oil stocks, but do you think investors have already discounted Gustav and the volatility/effect is already priced in?
I guess no risk, no reward.
I believe that the pullback the last two days are just investors who are nervous about holding their position ahead.
I'm looking for a spike in the oil sector as a result of the damages in the rigs within the gulf area.
Cl is printing it today just recovered 2/3rds of my losses on oil service calls with a few scalps. I'm sure you found some where to bank it also.
youngchuck,
yes I was able to switch to PUT options on some ags and oil stocks.
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