Tuesday, February 23, 2010

GS March 170

The market is weak today across all sectors. An early positive start has evaporated for everything but GS. I am looking at the March 170 calls at $.98. Tempting, but I would prefer either 175s or getting over $1.20 in premium. We'll see how the day shapes up. With the new focus in the political realm of health care THC is down significantly. Below $5.00 I would seriously start looking at it. With bad debt expense close to 8% it is double their profit margin. A good trade if insurance coverage increases. Buying THC at $5.00 and writing an Apr $5.00 at $.40 seems low risk with decent upside if Washington makes something happen.

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