Some major M/A activity gave fuel to the market

AMR announced a $8 billion dollar bid for beleaguered Delta. The FOMC state that there will be a soft landing. Following are today's trades for the fantasy portfolio:

Short 100 shares GOOG @ $491.93=$49,193.00
Sell 1 contract of Dec $480.00 covered put $870.00=$870.00
Sell 300 shares CAT @ $61.45=$18,435.00
Buy to close 3 contracts of CAT Nov. 60 calls @ $155.00=($465.00)
Target cover on GOOG short at $483.00
Target cover on RIMM short at $124.00

Trades from Monday (re-posted):

Sell 200 shares of ADM @ $35.06=$7,012.00
Short 500 shares of RIMM @ $127.50=$63,750.00

Net short positions: $112,943.00
Net from long positions: $25,852.00.00
Commisions $64.00
Total from long positions: $25,788.00



Portfolio:
BA 100 shares long @ $87.08=$8707.00.00
GT 1000 shares long @ $18.45=$18450.00
RIMM 500 shares short @ $128.42=$64210.00
GOOG 100 shares short @ $491.93=$49193.00
GOPXI 1 contract short GOOG 480 call @ $870.00

Total Long positions: $27157.00

Total short positions: $113,403.00
Total received from shorts: $112,943.00

Net positions=$26,697.00
Long cash position: $80,718.80
Gain to date $7415.80 (7.42%)

Rationalizations for trades:

ADM: It was looking like a loosing position so I sold.

CAT: With the calls sold this position was fully profitable so I wrapped it up. Since the calls were in the money they would go up almost lockstep with the rise in CAT. Why hold this position for it to drop.

RIMM: I think that RIMM is looking a little top heavy so I'm going to see if I can get a little drop out of it.

GOOG: I am going to bet on the might manipulators before OE to pull GOOG down some. In two years watching GOOG it is unusual to see this weeks type of gains on the week of OE. I sold a covered put to give a little hedge just in case.

Good luck investors

Disclosure: I am not currently long or short any of the shares aforementioned. I have some speculative option positions in GOOG and RIMM.

Note to all readers: This post and all other posts in this blog are for entertainment purposes only. All of the stocks listed are very highly speculative, and the portfolio is not diversified and could produce severe losses if you were to invest in these stocks. None of these stocks represent a recommendation in any way. As an individual investor, you have to assume your own risk. Prior performance is no guarantee of future returns.