Closing Positions on CIT, FRE
July 9th, 2008 by 
CA Editors
Stephen Frankola sends: I sold my little CIT and Freddie Mac (FRE) stakes yesterday into the strength at the end of the day. I don’t not believe in their future prospects, but I’ll take quick gains in the face of future uncertainty.
As a whole, the rally looked like short-covering to me… The parabolic gains heading into the close are one indicator, as people aren’t usually as eager to initiate new long positions at ever-higher prices as they are willing to cover their shorts. Also, the performance seen yesterday from dogs like Crocs (CROX) indicates that many shorts may have thrown in the towel.
I’m still holding USO $104 Jul puts, and I’ll see the value of that decline today as oil seems to be recovering modestly. If the inventory report at 10:30 is super bearish, oil should continue its slide; otherwise, it too may be pumped back up.
Editor’s Note: Despite crude inventories coming in lower than expected (bullish), oil prices fell today.
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July 10th, 2008 at 1:38 pm
To save another post on the home page:
When I closed FRE and CIT, i bought NTRI $12.5 July call and $7.50 ODP call (shares had been crushed after advising that sales were very, very sluggish). Right after I sold the financials I was disappointed as they continued their gains (I would have made about twice as much selling at the end of the session), but I thankfully was out before FRE’s decline back into oblivion.
I’m playing the dead cat bounce with ODP while NTRI seems to be drunkenly staggering out of oversold territory. USO puts still open, and those have bled a little today.
Why not try to take advantage of some market volatility?
July 10th, 2008 at 1:41 pm
Also, forgot to mention, bought CSCO Aug $22 Call yesterday at $.90 when the stock was at $21.60, down 6% after multiple analysts discussed the possibility of a disappointing quarter.