Nice roller coaster ride in the markets today. I wish the OZ time zone would be more in line with the US market so that I could take advantage of days like today. If someone sold puts at 3am in the morning buy 6am they could have closed their positions for a healthy profit.
Nevertheless, there were plenty of opportunities in the last trading hour too.
So what's my selection today?
#HPQ ( #HewlettPackard ). The stock jumped over 13% because Warren Buffett doubled down on it and when Mr. Buffett buys something than it is guaranteed that the stock goes up immediately. What's not guaranteed though is that it will stay up.
HPQ is a solid company and the financials look good too so there is certainly more upside potential but the overall market conditions are opposing forces so I am definitely non-directional with this stock. For this reason, I sold a strangle but waited with the put side until the stock dropped a bit, which helped me to collect a bit more premium.
Another critical factor to keep in mind is that the IVR jumped up to over 50 but by the time the market closed it was at 36.5. If it continues to fall further than I should be able to get out of this trade quickly with a decent profit.