STI initiates new short sell positions for Autodesk, LinkedIn, salesforce.com, and Adobe Systems in Equity Trades portfolio.

As explained in the December 29th issue of Smart Tech 50 Weekly Movers, we are initiating short sell positions for Autodesk (ADSK), LinkedIn LNKD), salesforce.com (CRM), and Adobe Systems (ADBE) in our Equity Trades portfolio based on their very low STR (Smart Tech Rating) scores. In fact, these are four of the ten lowest scoring stocks in our coverage universe, each with a suggested value of less than their current price. As we mentioned in the article, you don’t have to actually sell them short to profit from future declines. Instead, you can buy put options that go up in value when the price falls below your strike price (the price at which the option can be executed; e.g., you can make someone else buy that stock from you at that price).

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Rudolph Millan

Rudolph Millan

The Dec 29 issue is not posted in the archives. As an options investor, the short/put aspects interest me, but the blurb above does not give any guidance as to timeline or spread between strike and current price, so I can find nothing actionable. Can you help?

Jim Pearce

Jim Pearce

The 12/29 issue is not the monthly publication so it will not show up in the archives, but you can find it under the ‘Articles’ tab above as “Smart Tech 50 Weekly Movers” (that is the name of our weekly e-zine). We don’t provide specific options advice on these recommendations (we only identify them as likely to decline in value in the near term), so you may want to check with Jim Fink at Options for Income to see if he has any thoughts along those lines. Thank you.

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