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We closed out our Lululemon Athletica (LULU) January 55 put option during Monday’s selloff, pocketing a 42 percent gain after the stock breached our downside target. This morning we replaced that position with the Lexmark (LXK) April 31 put option. The stock should continue to fall even if the market as a whole manages to rally. Use a limit order to pay no more than $3.70 per contract if you don’t own it yet. While they’ve gotten clipped along with the broad stock market, commodities and their related investments are your best bets for the near term and long run. We are holding the SPDR Gold Trust (GLD) and iShares Silver Trust (SLV) and see recent dip as a buying opportunity. We can’t rule out either falling further in the near term if Europe’s woes lead to asset sales to meet margin calls, but the potential for a surge in inflation means the upside potential of both gold and silver far outweigh the downside risks. Read More
Buy to open the Lexmark (LXK) April 31 put option. Use a limit order to pay no more than $3.70 per contract. Read More
Sell to close the Lululemon Athletica (LULU) January 55 put option at the market. Read More
Volume 8, Issue 46 Read More
Continue to hold on to your SPDR Gold Trust (GLD) and iShares Silver Trust (SLV), or buy them if you’re a new client. They offer both downside protection from a stock market slide and solid upside potential with governments the world over printing money hand over fist. Also rated buys… Read More
China’s trade surplus expanded in October, despite declines in imports and exports. The trade surplus rose to USD17.03 billion last month, compared to USD14.51 billion in September. This figure, however, fell short of analysts’ expectations. Exports declined 7.2 percent from September while imports fell 9.5 percent. Analysts expect China’s full-year… Read More
Updates on past recommendations and how they've fared. Read More
Two top investing experts tell us what to buy. Read More
Volume 8, Issue 45 Stocks moved up in yesterday’s trading, continuing last week’s advance, but the action left a lot to be desired in terms of a lack of broad market participation. Likewise, in the early going of today’s trading, we’re seeing pockets of strength, but most industry groups are… Read More